Pension Awareness Day – Engaging employees with their pension
Pensions are a really important part of peoples’ future. Although most employees know they should be saving for their retirement, for many it’s just not top of their agenda. And for some, it’s not something they plan to worry about until nearer the time.
Today is Pension Awareness Day. A day that is organised to raise awareness of the importance of pensions and help people get their financial future on track. As an employer, you have an important part to play in this. Although it’s a good idea to remind employees of their pension all year round, this awareness day is a good opportunity to bring it to the front of their minds.
To help, we’ve rounded up our tips to getting your employees engaged with their pensions today, and in the future.
Encourage employees to learn about how their pension is invested
Most people know how the basics of a pension works, but more often than not, employees’ knowledge remains high level. By helping your employees to find out where their pension is invested and any other options available, can help them see the bigger picture. Knowing how their pension works can sometimes also lead to employees taking more interest in it and therefore increase engagement.
Remind employees to log into their online pension account if they have one
Although this one might seem simple, it could have a big impact on engagement levels. Although employees may be aware they have an online account, they might not fully understand what’s on it or how it works. By encouraging employees to take 5 minutes to log on, they can get a feel of how much is in their pension pot and what their contributions each month equate to, as well as their predicted retirement age. Seeing this information can help them get a real feel of the state of their pension and make an increase in contributions if necessary.
Introduce financial education throughout the organisation
Quite often, people aren’t aware of how much they need to save towards their retirement. By offering financial education to your employees, you can help them grasp the importance of saving enough for the retirement they desire. Many people overestimate their wealth and with people living much longer now, we often need much more than we think. Financial education can help employees understand when they might like to retire, how much they need to save in order to retire at that age and what they can do now to ensure this happens.
Break your pension communications down
Pensions can seem very overwhelming, so if you are sending out comms regularly, make sure you use clear and concise messaging. It’s also worth breaking pensions down into bitesize chunks so the information is easy to digest. Remember that your employees are all different ages and life stages so breaking your content down by demographics might help increase engagement.
Today is the perfect time to remind employees the importance of saving for retirement. But don’t forget that continuous communications throughout the year is just as important. Using the above tips can help keep your employees engaged with their pensions.
If you would like to find out more about how to increase employee engagement with your workplace pension scheme, contact us today. Or, visit the Secondsight website to find out more about the pension services we offer.
Secondsight is a trading name of Foster Denovo Limited, which is authorised and regulated by the Financial Conduct Authority.
Information correct as of 13/09/2021