How tech aids staff retirement plans

By Nathan Munt, Lucas Fettes Financial Planning

It’s no longer enough to provide a workplace pension scheme to meet Auto-Enrolment pension legislation.

Published in Norfolk Director Magazine Winter 2023

Ensuring Business as Usual: Lucas Fettes Financial Planning

Expectations continue to evolve following the pandemic and cost-of-living crisis; consequently, many employees now expect employers to support their retirement planning. Encouraging pension engagement and providing ongoing financial education is becoming a must.

Many employers continue to experience a lack of employee engagement and proactiveness concerning their workplace pension arrangements and retirement planning. Employees do not understand their pensions or the associated benefits, and consequently, they’re not saving enough for retirement.

Why have a workplace pension if nobody is saving enough? In a competitive labour market, offering an attractive pension scheme benefits your workforce and can also improve your retention rate.

Making use of technology

Use technology to help educate employees at each life stage and improve general awareness surrounding workplace pensions. Since retirement planning is most effective when started in advance, it is beneficial to provide these resources early.

Pension providers regularly develop their offerings; therefore, you should start by exploring what your existing scheme offers. Otherwise, there is a range of resources available elsewhere.

Apps/portals

Most providers offer a digital platform where employees can interact with their pensions.

The information gives them live pension details, whilst online dashboards also offer helpful snapshots. Importantly, these platforms allow employees the control and freedom to review their arrangements regularly and to make informed decisions.

Retirement planning tools

A range of calculators and retirement tools are available to help employees understand how much they need to support their lifestyle in retirement and track their progress.

These tools may not be sophisticated enough for some, but they offer helpful insight into whether you are saving enough. A common mistake under Auto-Enrolment is paying too little, with employees reluctant to commit beyond the statutory minimums.

Informative digital guides, videos and webinars can help make otherwise dreary content engaging and understandable. Videos are appealing to younger audiences, who are typically harder to engage.

What should you do?

Rather than treating this as another box-ticking exercise, ensure you understand the opinions of your employees. How many understand the pension scheme and the decisions they should make? What pension and retirement concerns could you help address? Can your pension scheme provider supply information and education, or is this reason to consider a review of your arrangements?

How can we help?

We are workplace pension specialists and advise on schemes that meet the needs of our clients and their workforce. We can support you by:

  • Reviewing the ongoing suitability of your arrangements
  • Using our expertise to advise on the best solutions
  • Delivering employee engagement sessions on pensions and financial wellbeing

If your organisation is considering a change or wants to understand the options available, please get in touch.

Lucas Fettes Financial Planning® is a registered trading name of Lucas Fettes & Partners (Financial Services) Limited and is authorised and regulated by the Financial Conduct Authority.

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GET IN TOUCH

Nathan Munt is a Chartered Financial Planner at Lucas Fettes Financial Planning, a multi-award-winning chartered firm of independent financial planners.

T: 01603 706854
E: nathan.munt@lffp.co.uk
Or visit www.lffinancialplanning.co.uk

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