PS Aspire, Trends in the DC Market Survey Results: Helping to illustrate organisations’ DC pension offerings and their attitudes towards, and methods of, employee engagement.
Below are some basic considerations within DC retirement plans, all of which are equally significant, to both employers and employees.
2. Member support
3. Value for money
In our second issue, following our introductory DC Issue 1: How much are you and your employers contributing?, we will now focus on member support.
Following the introduction of automatic enrolment and the inclusion of most employees in employers’ pension arrangements, there has been an increasing focus by employers on supporting and thus further engaging members in recent years. The engagement process, for DC members, is paramount in maintaining a healthy relationship between employers and employees regarding their pension pots.
In our survey, the bulk of respondents indicated using at least two of these different methods of supporting employees’ retirement planning. This is broken down in Figure 1 to show types and frequency of delivery of different types of retirement planning support made available to members.
Figure 1 Types and frequencies of support made available to employees
It can be seen that traditional face-to-face guidance (via pension clinics, presentations and seminars) remains popular in addition to remote support such as calculators, newsletters and broking services being widely used. The frequency of support available to employees, however, seems to be more skewed to the infrequent end as the majority of employers are providing support on an annual basis. Employer size was found to be the key determinant for the frequency of support available.
In addition to the above, employers made reference to roadshows, induction presentations and financial education seminars covering a range of personal financial matters including retirement planning.
In our next issue, we will focus in on value for money.
Read the full report, PS Aspire, Trends in the DC Market Survey Results, here.