Why does your pension need to be competitive and inclusive?

Attracting employees

Wojciech Dochan

February 19, 2024

The UK workforce is changing. 

People are living longer, birth rates are falling and people are staying in work longer. 

Plus, the workplace pension participation rate in the UK has been steadily increasing since the implementation of automatic enrolment in 2012. 

Is your pension scheme adapting to these changes? Is it competitive and inclusive?

With 79% of employees enrolled in a workplace pension, you can guarantee that the inclusivity of your scheme is an important issue for your employees. 

What do we mean by an inclusive pension scheme?

An inclusive pension policy is one that will allow your employees to:

Choose their level of investment. 

A range of investment options should be available in your pension scheme, catering to different risk appetites and financial goals, along with a personal bias towards an ethical or environmental investment approach.  

Choose their level of risk. 

Some employees will want to put more into their pension than others, and some will be willing to risk more to see a greater potential return on their investment.

By offering varied risk and return profiles, your employees can align their contributions with their long-term goals. Make sure you educate employees about these options to help them make decisions that match their retirement objectives.

Enjoy a competitive default option.  

To meet auto-enrolment regulations, qualifying workplace pension schemes must have a default fund. Typically over 85% of scheme members will remain invested in the default fund. This is often due to a lack of understanding or lack of engagement. Therefore the selection, and regular review, of the default fund are important. Your default fund should provide a balanced approach, suitable for the general workforce demographic.

Be able to make voluntary contributions. 

Flexibility in contribution levels and frequency can accommodate varying financial situations and make the scheme more inclusive.

Simply put, an inclusive pension scheme will allow any employee within your organisation to tailor their pension scheme to their financial needs. 

Daunted by workplace pensions?

Understanding workplace pensions can be tricky. 

Here at Bravo Benefits, we want your workplace pension to work for you, so we have created this employer’s guide to workplace pensions to help you on your way. 

In this employer’s guide to workplace pensions you will find:

  • A description of the typical lifecycle of a pension scheme.
  • Information on the different issues you need to consider at each stage of your lifecycle. 
  • Information about the different types of pension schemes available
  • Ideas on how to get your employees to engage with their scheme
  • Advice about administration and record-keeping
  • and much, much more…

Talk to us

If you would like to find out more about our solutions, get in touch.

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The importance of inclusivity

An inclusive pension plan is essential for promoting equality and fairness within an organisation. Employees come from diverse backgrounds and have different financial needs and priorities. 

At Bravo Benefits, we understand the importance of offering a competitive and inclusive pension plan - here's why:

1. Retaining Top Talent

Top talent is highly sought after, and organisations must provide compelling reasons for them to stay. 

A competitive pension provision can provide just that. 

Studies show that 90% of employees consider pensions as the benefit that can motivate them to stay in a particular job.  

Employees want to know that their future is secure and that their employer values their long-term financial wellbeing. 

Offering a competitive pension plan demonstrates your commitment to supporting your employees throughout their career journey.

2. Attracting Top Talent

In addition to retaining current employees, a competitive pension provision is also essential for attracting new talent. 

A robust pension plan can make your organisation stand out from competitors and attract highly qualified candidates who are seeking stability and security for their future.

Have you considered for example how your employer contributions compare to other similar businesses? Did you know that just a small 2% increase in employer contributions could make a dramatic difference to your employee’s finances in retirement – by as much as £115,000 in certain circumstances?

That’s something that could tip the balance in your favour in the eyes of a highly desirable candidate.  

3. Social Responsibility

An inclusive pension system ensures that all employees, regardless of their background or circumstances, have access to retirement benefits. 

This promotes social equality and helps address disparities in retirement savings that may exist among different demographic groups.

4. Employee Wellbeing

A pension plan that provides adequate retirement benefits contributes to the overall wellbeing of employees. 

Knowing they have a secure retirement income can reduce stress and anxiety about their financial future, allowing them to focus better on their work and personal lives.

The Importance of Pension Review Services

A pension services review can help you identify any gaps or weaknesses in your current plan and provide valuable insights into how to enhance it to meet the needs of your workforce better.

We understand that every organisation is unique. That's why we offer personalised pension review services tailored to your specific needs. 

Whether you need to increase employer contributions, offer more investment options, or improve employee communication, we've got you covered.

We can analyse your plan's performance, benchmark it against industry standards, and identify areas for enhancement.

Our service starts with a one-hour consultation to understand your current pension situation post-auto-enrollment. 

Learn more about our Pension Review Service here. 

Invest in your employee's future today

Offering a competitive and inclusive pension provision is an investment in your employees' future. 

By providing them with financial security and peace of mind, you demonstrate your commitment to supporting their long-term wellbeing and success. 

This not only helps attract and retain top talent but also fosters a positive work environment where employees feel valued, motivated, and empowered to contribute their best.

Conducting a comprehensive pension services review ensures that your pension provision will meet the evolving needs of our employees.

Don't underestimate the importance of a competitive pension provision - invest in your employees' future today.

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