Workplace Pensions
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INDEPENDENT PUBLICATION BY RACONTEUR.NET #0504 28 / 02 / 2018 WORKPLACE PENSIONS FINANCIAL PLANNING TECHNOLOGY CAN BE WHEN DERISKING IS 03 TARGETS SAVINGS GAP 13 THE ‘WOW MOMENT’ 14 THE SAFEST OPTION LOOKING for the key to PENSIONS ENGAGEMENT? Discover how to unlock better retirement outcomes. Call 0344 573 0033 or visit aon.com/pensionsengagement Aon Hewitt Limited and Aon Consulting Limited are authorised and regulated by the Financial Conduct Authority. Aon Hewitt Limited Registered in England & Wales. Registered No: 4396810. Registered Office: The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AN. Aon Consulting Limited Registered in England & Wales. Registered No: 03127195. Registered Office: Briarcliff House, Kingsmead, Farnborough GU14 7TE. RACONTEUR.NET 03 FINANCIAL WELLBEING WORKPLACE PENSIONS Holistic fi nancial planning Distributed in Navigating through to target savings gap Published in association with Employers and pension providers are increasingly off ering lifetime uncertain waters fi nancial planning in a bid to engage staff in saving for retirement for pension fund CONTRIBUTORS TIM COOPER broader workplace packages will become more common as compa- inancial wellness has become nies need them to attract the best TIM COOPER VIRGINIA a buzz phrase in the last few talent, he says. Award-winning MATTHEWS years. For employers, it refers Mr Tran says Willis Towers sponsors, trustees freelance financial Freelance writer to anything that supports the Watson’s research shows that the journalist, he and editor, she Ffi nancial security of their employees way to improve engagement with writes regularly for contributes regularly Grigoryeva/Shutterstock Yulia publications including to the national and and often involves a move from nar- wellness programmes is to use new The Spectator, London specialist press on row benefi t packages to wider and technologies together with an eff ec- and individuals Evening Standard, a range of business, more fl exible programmes of bene- tive communication strategy across Guardian Weekly and education and fi ts and education. multiple platforms and channels, Weekly Telegraph. consumer topics. A host of recent research has including mobile, PCs, paper based, shown the impact of fi nancial well- group presentations and one-to- being issues in the workplace. For one sessions. PÁDRAIG FLOYD example, a recent report by the The REBA survey confi rms that Former editor in chief of the UK pensions and Reward and Employee Benefi ts the role of technology in holistic investment group at the Association (REBA) showed that 25 planning is set to increase. It shows Financial Times, and per cent of employees say that fi nan- that 19 per cent of employers have ex-editor of Pensions cial concerns aff ect their ability to a wellness technology platform in Management, he is now a do their job. place, but 61 per cent have one in freelance business writer. The 2017 Willis Towers Watson planning or development. Global Benefi ts Attitude Survey Andy Woolnough, human resources also highlights a direct correla- and payroll solutions director at soft- tion between employees’ fi nan- ware fi rm Equiniti, says: “To help win cial concerns and performance at and keep the best talent, employers work through sick days, produc- have become more proactive in recog- tivity or engagement. The survey nising the diff erent needs of diff erent says employees are looking to their generations in their workforce. employers for support. Some are fi nancial advice fi rms provide paid- says provision of holistic fi nancial “People analytics – technology responding with programmes that for seminars and personal advice for planning is increasing, but from that uses data to link ‘people strat- support fi nancial wellbeing, but those who need it. Technology com- a small base of early adopters. He egy’ to wider business strategy – is employees are lukewarm about what panies provide digital education agrees that employers are increas- a growing part of that. Software they have seen so far and engage- platforms that provide individual- ingly aware that helping address can also give people individual- ment remains low. ised insights and prompt employees fi nancial worries should promote ised information in the right time Meanwhile, wellness product pro- to action at appropriate moments. a more engaged and healthy work- and context for them, and meas- viders talk of an explosion in the Others provide wellness content force, and so attract talent. ure the value of each strategy market over the last few years. A sur- linked to products such as loans and Mr Tran says providing a wider more precisely. Plus it can make vey by workplace fi nancial educa- savings accounts, perhaps at a nego- choice of fl exible, alternative sav- finance more user friendly with Publishing manager Head of production tion provider Nudge Global showed tiated discount for the employer. ings, such as workplace individual techniques such as gamification Reuben Howard Justyna O'Connell a signifi cant increase in employers “The challenge for employers is that savings accounts, general invest- [making software work like a com- providing a fi nancial wellness pro- they need help understanding which ment accounts and even debt facil- puter game].” Production editor Digital content executive Benjamin Chiou Elise Ngobi gramme between 2013 and 2016. In platforms, interventions and semi- ities, helps maximise the impact Rory Murphy, chair of the Merchant 2016, 45 per cent of companies had nars they need, and who will pay for of existing benefi ts budgets. It also Navy Offi cers Pension Fund, agrees Managing editor Design a fi nancial wellness programme or them,” says Mr Butler. “Each fi rm’s recognises the diverse needs in the that companies will off er more holis- At a time when past performance is not always an accurate predictor Peter Archer Grant Chapman were implementing one, up from needs are diff erent. For example, if workforce, which should improve tic planning as awareness grows. Kellie Jerrard 26 per cent in 2014, and 50 per were you employ lots of millennials your employee engagement. In future, However, saving for retirement is of the future, collaborative and innovative advice to pension fund Samuele Motta considering it, up from 20 per cent. needs will diff er from companies he expects tax-effi cient fi nancial still a crucial part of fi nancial well- trustees and corporate sponsors has become even more necessary. Head of design But some of these programmes with lots of part-timers, older workers advice using the recently intro- ness for everyone and it needs to start Tim Whitlock are still narrow and there is room or gig economy workers. Public sector duced pension advice allowance early. There is a danger that greater for progress towards holistic fi nan- diff ers from private and so on.” will also be popular. fl exibility will be at the expense of Our aim is to give you a clear and informed view on the right cial planning covering all the areas Minh Tran, director at benefi ts There may be some short-term pension provision, leaving employ- strategy and approach for your pension fund and with a focus on that employees need help with such consultant Willis Towers Watson, obstacles but, in the long term, ees with insuffi cient retirement sav- Although this publication is funded through advertising and as debt, pensions, saving, tax and ings later in life, he says. delivering positive returns for members, trustees and sponsors. sponsorship, all editorial is without bias and sponsored features insurance. In 2016, 96 per cent of Financial advice will also help are clearly labelled. For an upcoming schedule, partnership companies wanted to provide holis- support wellness and Mr Murphy inquiries or feedback, please call +44 (0)20 3877 3800 or email tic fi nancial education, but only 42 says companies should off er it For an initial discussion on your pension fund issues, please contact [email protected] per cent did so. using the new allowance. “I expect Raconteur is a leading publisher of special-interest content and Financial wellbeing expert they won’t because they tend to our UK Head of Pensions, Jeremy May: [email protected] or research. Its publications and articles cover a wide range of topics, Jason Butler says: “I detect a much average amount accumulated in a focus on short-term profi ts and including business, fi nance, sustainability, healthcare, lifestyle and pension by 2017, up from £36,000 +44 (0)121 232 2165. technology. Raconteur special reports are published exclusively in stronger awareness that fi nancial shaving costs,” he says. “But the the year before The Times and The Sunday Times as well as online at raconteur.net wellbeing solutions are an impor- £ k evidence shows that if you invest The information contained in this publication has been obtained tant part of recruitment and produc- 50 in and look after your staff , you will www.pwc.co.uk/pensions from sources the Proprietors believe to be correct. However, tivity. But I’m less convinced that it get a better return in productivity. of the UK do not know no legal liability can be accepted for any errors. No part of this is translating into signifi cant tangi- Enlightened companies with well- population now what level of publication may be reproduced without the prior consent of the ble action.” being programmes that include Publisher. © Raconteur Media expect to stay in retirement He says many good tools and ser- 25% full-time work 56% income they fi nancial education