Boosting the Uptake of Pensions
Written by Geoff Newman on 25/08/2010
Introducing programmes in organisations, in which employees are informed about the benefits of taking up a company pension, has been shown to be a great success for increasing pension uptake.
The publisher, Wolters Kluwer, revamped their pension arrangements and began a programme for all of their employees that led to the company doubling their pensions contributions. The process involved face-to-face meetings for employees, in small groups, so that employees with questions could engage with those delivering the sessions. 5 sessions were held back-to-back each day, which the company admitted was difficult for those who had to do the delivering. Nevertheless, they claim it was worthwhile for the impact that they had on their employees. Sessions were also recorded and made accessible to employees as podcasts on the company’s intranet for those that couldn’t attend the sessions.
The sessions themselves described the different pension schemes offered by the company since their consolidation, something that the company felt was important in order for their employees to fully understand the benefits they were offering. Wolters Kluwer’s reward manager, Anneke Heaton, announced “pensions are probably the most expensive benefit an employer provides but they get the least attention from staff.”
A recent survey performed by the National Association of Pension Funds has shown that 42% of people who choose not to take up company pensions don’t appreciate that if they did so then they could benefit from tax relief. A vast proportion of the UK’s workforce remains in the dark when it comes to pensions, and programmes such as this are an ideal way to solve this problem.