Talking to Your Employees about Pensions

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The law in England makes it clear that any employer with five or more members of staff must provide their employees with access to a pension scheme. Since 2012, it has also been a requirement for businesses to enrol all of their employees and pay into that scheme.

The scheme that you offer can take one of three forms: an occupational pension scheme, a personal pension scheme that you contribute to, or access to a stakeholder pension scheme.

As an employer, there is a lot that you can do to help your workers make the wisest decisions when it comes to planning for their futures and thinking about their retirement. Offering such a service is incredibly beneficial to them, but it can also be really helpful for you.

Read on to find out why it’s worth your time to talk to your employees about pensions.

Why You Should Give Your Employees Information About Pensions

The decisions that your employees make about their pensions will have a lifelong impact on their finances, whether or not they realise it. As an employer, you have a moral responsibility to help them to make the right decisions, and to offer them the necessary support and guidance to do so. The best way to do this is simply to take the time to talk to them.

This has a number of benefits for all concerned. Firstly, it’s a great way to help your employees to understand the value of the scheme as part of the employment package that you offer. If the scheme carries a lot of benefits, this may entice your most talented members of staff to look to the long-term and stick around. You might even find that it inspires loyalty, as a good scheme is a perfect way to show your staff that you care about their futures.

Of course, providing your employees with a better understanding of pensions on the whole is in itself a valuable education for them. Most employers care about the people who work for them, and the boon of knowing that you’re helping them in some small way is often an enticement in itself.

What You Should Tell Your Employees about Your Pension Scheme

If you do decide to talk to your employees about your retirement scheme, there are a number of important factors that it’s helpful to cover, such as how they can join, how much it will cost them, how much you will pay towards it, and what benefits the scheme provides.

If they’d like more information, consider referring them to The Pensions Advisory Service, so that they can talk to professionals with the knowledge to answer any queries they might have.

Invest in your workforce today by taking the time to talk them through their pensions options; the power to guide them towards a better future rests in your hands.

 

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