Are your employees keeping track of their pensions?
According to the Department of Work and Pensions (DWP) there are around £3 billion in unclaimed assets in the UK right now.
Just think about how much money that is. In October 2017, the Euromillions lottery had the biggest ever jackpot. From a £2.50 ticket the winner could claim £168 million. In the same way as a lottery win is life changing, tracking down a lost pension could help most of us to have a better retirement.
Unclaimedassets.co.uk estimates that one-in-four workers have lost or left behind at least a portion of their retirement savings. Could this money belong to one of your employees?
Much of this forgotten money is lost because people simply can’t remember where they put the paperwork, or have moved address without letting the pension provider know.
A job is no longer for life and according to the DWP; an average person will have 11 jobs over the course of their working life.
Employees who have had multiple jobs are likely to have multiple pension plans and may not be on track for the retirement that they wish to have.
As an employer, you can play a central role in helping your employees understand how to track lost pensions and how to get the most from all of their retirement savings.
1. Speak to your employees to encourage them to keep track of all their pensions
Remember, your pension provider may be able to help you improve engagement in your workplace pension through a wide range of methods such as:
- Communication campaigns designed to get them to engage with their pension
- Calculators and tools to help them understand how much to save and provide simple steps to help them save more
- Simple mobile access to their pension and investment information
2. Make them aware of The Government’s Pension Tracing Service
This was launched in May 2016 to help employees find their lost or forgotten retirement savings. The database maintains 320,000 pension scheme contact details to assist with reclaiming lost pension money.
3. Encourage your employees to always keep their details up-to-date
For all pension providers, they rely on their customers keeping their address details up-to-date to provide annual pension statements and other communications.
4. Bring their pension pots together
Most of your employees probably have more than one pension pot. Bringing them together in one place can make it easier for them to see how all their funds are doing so that they know how much they have saved for their retirement and if they need to make any changes, such as increasing their pension payments, or changing how they are invested.
Your pension provider will be able to support your employees through communications on this option.
So why not speak to your employees in the coming weeks about their pension pots and encourage them to keep on top of their paperwork?