PENSIONS
ways schemes can support savers’ fiscal health in retirement, such as providing information on saving for retirement, accessing pension money early (for over 55s), and what schemes might say to savers looking to opt out or opt down. We recommend pensions schemes publish the information contained within this resource in their online portals and actively partner with their employers to help disseminate relevant information to savers. If you haven’t heard from your schemes about this yet, you should get in contact with them. The ‘pay your pension some attention’ campaign If you’re looking for a fun and engaging way to start a company-wide conversation about pensions, the PLSA and Association of British Insurers coordinated Pension Attention campaign is a great place to start. Drawing on public relations, digital, social and out-of-home tactics, the campaign aims to go beyond awareness, prompting action and inspiring behaviour change among hard-to-reach consumers aged 35 to 55. You can also download a free toolkit to promote the campaign. Pension Attention boosts understanding and engagement in pensions. Launching on 6 September at the start of Pension Awareness Week and coinciding with the CIPP’s National Payroll Week, it is backed by some of the best-known brands in pensions. We’re calling on employers to help us achieve our greatest impact to date
by rallying together around one shared mission: to inspire the nation to engage with their pension. We’re doing this by targeting consumers with a simple and clear educational message that guides them towards greater knowledge and greater action, with three simple steps: l find out if you have any lost pension pot savings l log in to your pension accounts and check what you might get when you retire l picture your future self and how much you might need. Retirement Living Standards can help employees picture their retirement future Another engaging tool is the PLSA’s Retirement Living Standards (RLS). Based on independent research by Loughborough University, they have been developed to help savers picture the kind of lifestyle they could have in retirement. By showing what a range of common retirement goods and service cost at three different standards of living – minimum, moderate and comfortable – they are a great first step to help savers understand how much they need for retirement. According to the research, the cost of a Minimum Retirement Living Standard is £14,400 for a single person and from £22,400 for a couple. The Minimum Retirement Living Standard is the same as the Joseph Rowntree Foundation’s Minimum Income Standard and reflects what members of the public think is
required to cover a retiree’s needs, not just to survive but to live with dignity – including social and cultural participation. It’s worth remembering that a couple who both receive a full State Pension of £11,502 per year each will reach the Minimum level and with some modest savings in a workplace pension, will be well on their way to the Moderate level. At the Moderate Retirement Living Standard level, it’s £31,300 for a single person and £43,100 for a couple. The Moderate Retirement Living Standard, in addition to the Minimum lifestyle, provides more financial security and more flexibility. At the Comfortable Retirement Living Standard, retirees can expect to have more luxuries like regular beauty treatments, theatre trips and two weeks holiday in Europe a year. Not all savers are the same; they will have their own expectations and requirements when it comes to visualising their retirement. As financial planning tools, the RLS are designed to assist individuals in identifying elements of their preferred retirement lifestyle and provide insights into associated costs. Savers can use them to judge whether their current savings levels are going to enable them to reach their desired lifestyle which may fall between the given standards. It’s more important than ever for employers to help staff build their financial knowledge and confidence and encourage everybody to pay your pension some attention. n
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| Professional in Payroll, Pensions and Reward |
Issue 103 | September 2024
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