WellbeingRewards & BenefitsChallenging financial times highlight the importance of a fool proof pension experience

Challenging financial times highlight the importance of a fool proof pension experience

abrdn explains the importance of managing your pension during financial periods of volatility, emphasising the benefits of master trusts as an option to employees

For most people, their pension will be the largest source of income in retirement. It is therefore crucial that they understand it, plan for it, and know where to go to get more help if they need it.

Employers may be best placed to help with this, both in terms of their day-to-day pension experience and financial education. For the current workforce, this can be a lot easier to achieve through auto-enrolment and internal communication channels.

However, this becomes much more difficult for employees who no longer work in the business.

For large employers who have significant resources to dedicate to the cause, this is much less challenging. But for those smaller employers without this luxury, this can come at the detriment to employees and members of their pension schemes.

Defined Contribution (DC) and Defined Benefit (DB) pensions master trusts could be a solution for these smaller employers, providing access to financial education supported by a high quality and efficient day-to-day member administration service.

Financial wellbeing

These are challenging financial times for many, with the spiralling cost of living, economic uncertainty and volatile financial markets making this a very real issue. Those with no savings will be seeing their money is- not going as far, those with cash savings will be aware that they are losing value in real terms as inflation remains high and those with investments are likely to be seeing any growth outstripped.

Increasing interest rates are making mortgages more expensive at a time when everything else is getting more expensive too. It is not surprising then that, according to the Money and Pensions Service, as many as 24 million adults in the UK do not feel confident managing their money.

With recent statistics from Champion Health showing that financial pressure is the top cause of stress outside of work (coming above relationships, parenting, caring responsibilities, ill health, and bereavement), this is something many employers will be very conscious of.

Employers are well placed to help their pension scheme members but may not have the resources to do that without some external support. Helping scheme members to engage with their pension, to recognise the benefits of saving into a pension and, for those lucky enough to have one, understanding how their DB/final salary pension could support them in retirement, is critical.

For some, it will be their first taste of considering their financial future, for others, it will be part of a wider financial plan. Either way, financial education for all and access to advice for those who need it underpins their financial wellbeing.

Pensions are clearly hugely important and members need to understand the type of pension they have and the options that provides but financial education should be wider than that, encompassing everything from budgeting, saving and cashflow management, to understanding what’s going on in the economy and financial markets and why that matters, right through to knowing when an ISA might be appropriate, how insurance works, the importance of getting tax reporting right, having a Will and Powers of Attorney in place and how to make the most of tax allowances and reliefs.

What's Hot

HRD Roundtable Report: Levelling Up Onboarding for the Hybrid World

Roundtable Report HRD Roundtable Report: Levelling Up Onboarding for the Hybrid World 5 May 2022

8m

HRD Roundtable Report: Levelling Up Onboarding for...

Attracting new talent is shooting up the priority list, but also proving more difficult than ever. A...

View event
HRD Roundtable Report: Redefining Company Culture in Hybrid Work Environments

Roundtable Report HRD Roundtable Report: Redefining Company Culture in Hybrid Work Environments 26 May 2022

8m

HRD Roundtable Report: Redefining Company Culture ...

The process of redefining a company culture is a complex one. Culture contributes directly to the da...

View event
Learning to win the talent war: how digital marketing can develop its people

Whitepaper | Talent Development Learning to win the talent war: how digital marketing can develop its people

9m

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. I...

View resource
HRD Roundtable Report: Strategies For Re-Engaging The Hybrid Workforce

Roundtable Report HRD Roundtable Report: Strategies For Re-Engaging The Hybrid Workforce 5 May 2022

9m

HRD Roundtable Report: Strategies For Re-Engaging ...

We know hybrid working is here to stay, forcing many organisations to experiment with innovative and...

View event
HRD Roundtable Report: Making it ‘Worth It’ – What We Need to Reward, Engage and Retain

Roundtable Report HRD Roundtable Report: Making it ‘Worth It’ – What We Need to Reward, Engage and Retain 3 March 2022

9m

HRD Roundtable Report: Making it ‘Worth It’ – What...

We know the pandemic has caused many people to revaluate their careers and relationships with work a...

View event
Dave Ulrich: How can business and HR leaders simplify complexity?

Leadership Development Dave Ulrich: How can business and HR leaders simplify complexity?

1y Dave Ulrich

Dave Ulrich: How can business and HR leaders simpl...

HR thought leader Dave Ulrich outlines ways leaders can deal with complexity in an increasingly busy...

View article
HRD Roundtable Report: Using HR Data to Inform Organisational Decision Making

Roundtable Report HRD Roundtable Report: Using HR Data to Inform Organisational Decision Making 5 May 2022

9m

HRD Roundtable Report: Using HR Data to Inform Org...

Historically, HR hasn’t been as effective as it could be in sharing and communicating data with wide...

View event
Digital transformation investment grows but critical skills gaps remain - Coursera report

Digital HR Digital transformation investment grows but critical skills gaps remain - Coursera report

1y Leah Belsky

Digital transformation investment grows but critic...

Covid-19 has accelerated the rate of digital learning on a global scale. Coursera's latest report pr...

View article
Wellbeing in the hybrid workplace: how to successfully drive engagement

Employee Engagement Wellbeing in the hybrid workplace: how to successfully drive engagement

1y Alara Basul | Sponsored

Wellbeing in the hybrid workplace: how to successf...

Remote working has impacted the way we communicate as a workforce, but striking the right balance be...

View article
How to create a company culture capable of empowering the modern workforce

Culture How to create a company culture capable of empowering the modern workforce

1y Alara Basul | Sponsored

How to create a company culture capable of empower...

While new working patterns that emerged from the pandemic have earned a permanent spot in the w...

View article
WATCH: Connection and collaboration in a hybrid workplace

Leadership Learnings WATCH: Connection and collaboration in a hybrid workplace

1y Amy Kirkham

WATCH: Connection and collaboration in a hybrid wo...

Alison Noon-Jones, VP of People & Culture at Leidos UK & Europe, shares how crucial employee engagem...

View article
Turbulence ahead: Why it’s time to be bold in your leadership

Leadership Development Turbulence ahead: Why it’s time to be bold in your leadership

1y Terence Mauri

Turbulence ahead: Why it’s time to be bold in your...

HRD thought leader and Hack Future Lab founder Terence Mauri sets out why the biggest risk to leader...

View article

And it is not just about the breadth of the topics, it is about appreciating that different people want to access information in different forms. Some prefer short videos, other like more detailed written information, some prefer interactive webinars. All can be part of a comprehensive suite of materials available for members of the abrdn pensions master trust.

The importance of pension administration

In abrdn’s experience, if members of a scheme have a question, they are looking to speak to someone that will handle their enquiry from start to finish. It is providing the human touch that is so often missing.

Of course, members need support to be professional, expert, and courteous but they also want to deal with people who will own the issue and respond to agreed deadlines. The abrdn pensions master trust, which is a DB master trust, provides its members with an administration service from XPS, including an optional online service, in addition to the free financial education from abrdn financial planning.

The trust provides all members with access to a dedicated specialist team with a specific phone number and the comfort that the person they speak to will handle their query from start to finish. This is particularly important as many members are contacting their pension scheme due to milestones in their lives such as redundancy, divorce, or bereavement.

Members are also reassured that when they do call that they are not rushed off the phone, so that they can be happy they have all the information they require to make the decision they need and that at the other end of the call is an empathetic, patient and friendly voice.

Many members are also not familiar with pensions and the jargon that can go with it. The abrdn master trust communications carry the Plain English Campaign’s Crystal Mark which ensures communications with members are clear and easy to understand.

If you would like to find out more to help decide whether a master trust could help your business, please contact one of our pension solutions specialists at [email protected]

 

Comments are closed.

What's Hot

HRD Roundtable Report: Levelling Up Onboarding for the Hybrid World

Roundtable Report HRD Roundtable Report: Levelling Up Onboarding for the Hybrid World 5 May 2022

8m

HRD Roundtable Report: Levelling Up Onboarding for...

Attracting new talent is shooting up the priority list, but also proving more difficult than ever. A...

View event
HRD Roundtable Report: Redefining Company Culture in Hybrid Work Environments

Roundtable Report HRD Roundtable Report: Redefining Company Culture in Hybrid Work Environments 26 May 2022

8m

HRD Roundtable Report: Redefining Company Culture ...

The process of redefining a company culture is a complex one. Culture contributes directly to the da...

View event
Learning to win the talent war: how digital marketing can develop its people

Whitepaper | Talent Development Learning to win the talent war: how digital marketing can develop its people

9m

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. I...

View resource
HRD Roundtable Report: Strategies For Re-Engaging The Hybrid Workforce

Roundtable Report HRD Roundtable Report: Strategies For Re-Engaging The Hybrid Workforce 5 May 2022

9m

HRD Roundtable Report: Strategies For Re-Engaging ...

We know hybrid working is here to stay, forcing many organisations to experiment with innovative and...

View event
HRD Roundtable Report: Making it ‘Worth It’ – What We Need to Reward, Engage and Retain

Roundtable Report HRD Roundtable Report: Making it ‘Worth It’ – What We Need to Reward, Engage and Retain 3 March 2022

9m

HRD Roundtable Report: Making it ‘Worth It’ – What...

We know the pandemic has caused many people to revaluate their careers and relationships with work a...

View event
Dave Ulrich: How can business and HR leaders simplify complexity?

Leadership Development Dave Ulrich: How can business and HR leaders simplify complexity?

1y Dave Ulrich

Dave Ulrich: How can business and HR leaders simpl...

HR thought leader Dave Ulrich outlines ways leaders can deal with complexity in an increasingly busy...

View article
HRD Roundtable Report: Using HR Data to Inform Organisational Decision Making

Roundtable Report HRD Roundtable Report: Using HR Data to Inform Organisational Decision Making 5 May 2022

9m

HRD Roundtable Report: Using HR Data to Inform Org...

Historically, HR hasn’t been as effective as it could be in sharing and communicating data with wide...

View event
Digital transformation investment grows but critical skills gaps remain - Coursera report

Digital HR Digital transformation investment grows but critical skills gaps remain - Coursera report

1y Leah Belsky

Digital transformation investment grows but critic...

Covid-19 has accelerated the rate of digital learning on a global scale. Coursera's latest report pr...

View article