Retirement Savings: Apathy Rules! But Who Cares?

There are certain things in life that will happen whether we plan for them or not. One of these events is when we reach the conclusion of our working lives that we want to continue to receive an income but would rather not have to work to receive one. Otherwise known as retirement savings, wages without work or the dreaded P word.

We now live in an environment where most of us are auto-enrolled into a workplace pension scheme. The most recent statistics available tell us that on average only around 10% of employees have made a positive decision to opt out. This figure doubles for employers with less than 10 employees.

Worldly wise pension experts acknowledge that the opt-out rate is not likely to change much even with the latest increase in mandatory contribution levels from April 2019.

So, a typical workplace scheme will have a minimum of 7% to 9% of payroll being invested to provide our wages without work. Is that enough? Who knows!

However, it's a considerable level of investment to make without having any idea of whether its enough or what it might provide.
Yet that is the position that many workplace pension scheme members find themselves in.

The challenge which therefore needs to be addressed is that we have plenty of employees joining a workplace pension scheme, but a chronic shortage of those who understand and engage with what they are in.

Part of an employer's retirement savings strategy should involve initial and importantly ongoing communication and support to its employees. Remember that for the more enlightened employer their retirement savings strategy forms part of their organisation’s succession planning.

At Bravo Benefits, we can tailor a communications programme that suits your needs and budget, whilst helping your employees to engage with and not just be a member of your scheme.

In what other part of your organisation would you have such a high level of investment without making sure that you are getting value for money?

At Bravo Benefits, we offer a variety of benefits that work to engage, protect and reward your workforce. To find out more about how Bravo Benefits can encourage your employees to cycle to work, call us on 0330 333 9100 or email us at information@bravobenefits.co.uk. Talk to us today by calling us on 0330 333 9100.

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