Scottish Widows has released recommendations for employers and advisers, with the goal of enhancing employee engagement with their pension savings.
Backed by figures from the Association of British Insurers (ABI), the company highlights the pressing issue of low pension awareness levels in the UK, indicating that only 20% of the population is confident in saving for retirement.
Scottish Widows's 2023 Retirement Report further underscores this concern, revealing that one in three individuals (35%) may struggle to maintain financial stability during retirement.
The recommendations provided by Scottish Widows offer practical approaches to improving pension engagement:
- Inclusivity: Foster an inclusive pension environment for individuals of all ages, stages and demographics.
- Interactive tools: Employ new, engaging interactive tools to make pension information more accessible and enjoyable.
- Digital adoption: Encourage the use of pension apps and promote digital activity to encourage regular pension check-ins.
- Sustainability: Integrate environmental, social, and governance (ESG) factors into pension investments for a more sustainable approach.
- Simplicity: Avoid complicating pension communication with overly formal and complex language; keep things straightforward.
- Tailored guidance: Provide tailored guidance for diverse audiences, catering to both those seeking basic information and those requiring advanced insights.
- Year-round engagement: Recognise the ongoing importance of financial wellbeing and maintain year-round pension engagement efforts.
These recommendations serve as a valuable resource for employers and advisers seeking to address the pension awareness challenge and empower employees to secure their financial futures.
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