Are UK employees saving enough?

05 Aug 2013

According to research recently carried out by Scottish Widows, the number of employees saving adequately for retirement has hit an all time low, yet aspirations for pension income has risen.

*The annual Scottish Widows pensions report, which surveyed 5,200 Britons revealed that less than half (45%) of those who could and should be preparing financially for their retirement are currently saving enough.

*20% of respondents are saving nothing at all and over a third are under-saving either somewhat or severely.

The onset of Auto Enrolment will help people focus more on pension provision over the coming years and we would expect these numbers to change however, what can you as an employer do to help and why do you need to be concerned with this?

Now auto enrolment is upon us, the Pension Regulator (TPR) want to see employers ensuring its pension scheme members can make informed decisions around key areas including appropriate contributions and investment risk.

Wingate’s core pension service proposition includes as standard the provision of ‘Goal Based’ Retirement Planning Reports for all scheme members.

These reports are designed to empower the individual to take control of their retirement planning and help them understand in a very simple way what their retirement income objectives are and whether they are on track to achieve these goals. The reports are very effective because they clearly set out the information and solutions in a format that people can understand and as such value.

At any point in time during the employees’ employment they are free to approach us to ask us to update this report and obtain advice around it.

In summary these retirement reports and the accompanying advice not only go a long way towards meeting the TPR’s guidelines around contribution decisions and investment choice/risk but also increase the perceived value of an employer’s pension benefit.

Next Steps….

Wingate Benefits Solutions are here to assist you in planning and implementing the new reforms and structuring your pension benefit to meet the Pension Regulators guidelines.

Should you wish to discuss the above in more detail or any other aspect of your current or soon to be established pension scheme please, do not hesitate to contact your usual Wingate Benefit Solutions adviser or call us on 0844 406 0027.

*Source of information – Scottish Widows 2013 Pension Report

Tax and legislation are liable to change. This information is based on WBS’s current understanding of UK law and HM Revenue & Customs practice and legislation we believe may apply in the future. No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of the information contained herewith. It is recommended that professional advice is sought prior to entering into any financial arrangement

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Employee Benefit Benchmarking Report 2022

Exclusively focused on UK organisations with employee headcounts of up to 1000, the data and conclusions shared in this report are directly relevant to companies of this size and profile.