Recent research* carried out by Smart Pension found that:
- traditional retirement is ‘over’
- the retirement savings advice gap is real
- savers are crying out for assistance in managing their money
At the moment pensions are a fantastic retirement vehicle. Not only are savers under the age of 75 incentivised with income tax relief on pension contributions, but assets held within a pension are also free to grow without incurring income tax or capital gains tax. By saving into a pension early in their career, your employees can maximise the positive effects of income tax relief and ‘gross roll up’.
We don’t know how things will shift in the future, but the research is clear that engaging and educating people about their pension, sooner rather than later, is key.
The majority of workplace pension scheme providers will send communications to members when they join the scheme, once a year with an annual statement, when members are approaching retirement, and when they reach retirement. But what if it’s too late by then?
How can I help as an employer?
There are several key things you can do as an employer to engage your employees with their pension – make sure that they:
- have registered an account with your chosen provider
- keep their details up to date with your chosen provider
- complete their expression of wish form
- read their annual pension statements
- research transferring previous pension savings into their current scheme
- understand that there are a variety of different retirement options
- read their member guide
Lots of providers will have materials available on their website that covers these subjects so reach out to your provider if you can’t find them.
Where can I get help?
Barclays Business Banking has partnered with Smart Pension, which means customers can easily set up their workplace pension in a few simple steps. Visit our website to sign up, set up your employer account with Smart Pension, and add your employees. There is also information on The Pension Regulator’s website, gov.uk or you can speak to an independent financial adviser.
*Source: The Future of Global Retirement
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