Company-Sponsored Pensions - Show Some Appreciation

Chris Murray looks at how employers can use better communication and online technology to help employees recognise the value of their company-sponsored pensions.

Every year, UK employers pay millions of pounds in pension contributions, yet much of the workforce is oblivious to the real value of the pension funds generated on their behalf. It’s hardly surprising then that these employees are not as appreciative as their employers might hope and that these contributions often have little impact on recruitment and retention.

At a time when large numbers of final salary pension schemes are being closed to new entrants and, ultimately, to future benefit accrual, it is little wonder that any changes connected with pensions are generally viewed with suspicion. Even good money purchase schemes, whether occupational or group personal pensions, are often unappreciated – unless employers have communicated the benefits properly.