Two-thirds of UK employees are now saving into a workplace pension following the introduction of auto-enrolment pensions, according to recent research from CIPD Employee Outlook (EO).
Despite the recent £8m TV campaign from the DWP, research by online pension adviser, Wealth Wizards, has shown that by the end of 2015, an alarming thirty-eight per cent of working Britain’s still do not know what auto-enrolment is or realise that they are entitled to a workplace pension.
The 2015 Global Benefits Attitudes Survey found that while 60 percent of people in their 50s are unworried about their immediate or long-term finances, employees in their 30s are the most likely to be worried about both, with 1-in-5 (20 percent) seen as ‘struggling’.
A new version of the Code of Good Practice on Incentive Exercises for Pensions was today published by the Incentive Exercises Monitoring Board (IEMB).
In an age where millennials (people born after 1980) account for a growing percentage of the workforce, and baby boomer representation decreases, companies are recognising that the two generations have a very different attitude when it comes to saving for their future.
The government has announced that more than five million people will be able to sell their annuity from 6 April 2017, the administration will also extend its landmark pension freedoms and create a new secondary annuity market.
Despite the introduction of pension freedoms bringing an increased need for advice, research from online pension adviser Wealth Wizards has revealed that the majority of Brits avoid seeking pension advice. More than half believe that pension advice will be too expensive and an astounding twenty-nine per cent of Brits don’t seek professional advice as they find discussing their finances and pension provision too embarrassing.
New research from Portus, the employment benefits consultancy firm, reveals that 66 percent of the British working population expects to work beyond 65. Just over one in ten (11 percent) anticipate they will be working beyond 76, or will never retire.
Out of nearly 2,000 respondents in a new survey conducted by loan company Provident, 19 percent admitted that they struggle financially within two weeks of getting paid and 40 percent don’t save any money on a monthly basis. With more jobs paying employees the National Minimum Wage, 35 percent of respondents said that they haven’t had a pay rise in two years or longer, despite the improving economic conditions.
The Chancellor, George Osborne, has set the apprenticeships levy, to be launched in April 2017, at 0.5 percent of an employer pay bill in his Spending Review. The levy will only be imposed on firms with a pay roll that amounts to more than £3 million a year.
One in six employers say their staff are still confused about the new pension freedoms, over six months after they were introduced.
The introduction of auto-enrolment and ‘pension freedom’ reforms have meant that pensions and retirement choices have never been wider for employees – something that is undoubtedly to be applauded. However, for HR, these pension changes and the implications for employees presents one of the biggest challenges to date The increased choice and flexibility means that people need more help than ever, and there is a real risk that some do not engage at all because of the complexity and jargon that comes with pensions.
When people start saving into a pension they essentially obtain a pay rise. Not only will the Government top up a pension pot by providing tax relief but employers will often have to contribute as well.
Employers are considering devising digital pension tools for tech-savvy millennials, but only half of surveyed employers in a recent study by Aegon UK are anywhere close to adopting them.
Research conducted by the Pensions Policy institute and sponsored by Age UK found that just under a quarter of all employees are not eligible for auto-enrolment, yet the number of women who do not meet the criteria is double the 16 percent of men.