Addressing increases to auto-enrolment contributions to maximise financial wellbeing
In April 2019, the final level of auto-escalation for minimum employer and employee contributions to defined contribution (DC) pension schemes came into effect, with employers required to contribute at least 3% of an employee’s salary into the pension pot, while the employee contributes 5%.
Employers might consider pay increases to offset the affects on take home pay and avoid staff opting out to tackle present financial concerns; however, this is not often a viable option. So, what areas of compensation, benefits and reward can support both immediate needs and retirement saving goals?
Mark Bingham partner at Secondsight shares his thoughts as he believes portraying a monetary value rather than a percentage can increase employee understanding. He also recommends sending a simple, personalised letter to employees’ homes, detailing how their take home pay will be affected.
Read the full article from Employee Benefits and Marks comments here.