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21 Oct 2015

UK employers updating their pensions for younger workers

A new study has revealed that the majority of UK companies are revamping their workplace pension schemes to make them more suited to the millennial generation, On Rec reports.

According to a recent survey of 500 British firms, conducted by Ageon UK, some 87% have made ‘significant´ changes to their pension scheme in recent years, in order to suit the requirements of employees aged 16 to 35.

More than a quarter (26%) of the businesses surveyed have implemented a more rewarding savings scheme to attract and retain younger talent, while a similar number (23%) have introduced digital tools to enable workers to manage their own pension contributions – a stark contrast to the 4% who have upped their telephone or face-to-face advice.

In addition to this, the report found that around one in five (18%) employers now reward staff for increasing their personal contributions, and a further 15% have expanded their offerings to provide more flexibility.

It is thought that auto-enrolment has been the main catalyst for a change in the attitudes of both employer and employee, as more than two thirds (68%) of bosses feel an increased duty of care since they became responsible for organising their workforce´s pension schemes.

Although digital tools are becoming more commonplace for pension schemes, traditional channels such as regular face-to-face meetings and print reminders, each with a respective 22%, are still being used by UK employers.

But as Angela Seymour-Jackson – Ageon UK´s managing director of workplace solutions – explains, we are currently in a digital age where millennials are becoming an increasingly significant part of the workforce; and they are turning to workplace pensions in greater numbers than ever.

“More workers aged 22 to 29 have signed up for a workplace pension since 2013 than any other age group,” she explains. “They account for a significant section of the workforce and it´s encouraging to see businesses adapting to meet their changing needs, alongside those of other generations.”

Copyright © M2 Bespoke 2015

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