28% of employees have considered opt-outing of auto-enrolment[i]This may well increase when the minimum employee contribution rises to 5% in 2019. In response, Punter Southall Aspire has launched ‘Next Generation Savings’, a new online savings platform that will encourage employees to save more into their pension earlier and create a more secure financial future.
Currently 68% of UK workers contribute less than 4% of their salary towards a workplace pension.[ii] 55% claim they would pay more if they could[iii] but are unable to because of immediate financial pressures, including high living costs, low wages and inflation.
Others are more apathetic. Retirement can seem too far away and unimportant and, for those who aren’t financial experts, the world of pensions can seem jargon-filled, confusing and complex. 55% of adults claim that financial jargon stops them taking more interest in their savings.[iv]
Next Generation Savings aims to challenge and address these issues by offering employers smart technology, digital tools and compelling content to encourage employees to interact and fully engage with their workplace savings and pensions, changing their savings behaviour and encouraging them to save more for retirement earlier.
Employers that sign up will benefit from:
- A smart technology platform ‘myAspire.com’ where employees can view their entire financial situation in one place, including their mortgage, pensions, bank accounts and savings
- Digital tools that give employees to get a clear picture of their financial situation now and the impact of saving more
- Regular updates and clear, jargon-free communications in newsletters, social media content and a magazine
- Financial education delivered in multi-media formats
For companies looking to switch their pension schemes, Punter Southall Aspire is offering a multi-employer, occupational pension scheme – the Aspire Savings Trust – which brings together governance, investment, administration and communications expertise within a technology-led solution.
It also includes a cost-effective Master Trust solution which was launched by Punter Southall Aspire in 2016 to offer companies a simple and cost-effective way to manage their Defined Benefit (DB) Additional Voluntary Contributions (AVCs), with the highest standards of governance. The Master Trust has attracted several UK companies since its launch.
The key benefits for employers are its single governance structure, more regular ongoing governance of their benefits than is likely under a DB scheme, providing members and trustees with piece of mind, and enabling trustees to focus all their governance time on the main DB scheme.
Steve Butler, CEO, Punter Southall Aspire said, “The vision for Next Generation Savings has come from speaking to hundreds of HR directors, benefits directors and CEOs who are all desperate to get their staff more engaged in pensions. They have tried everything and nothing has worked. Now with auto-enrolment contributions rising in April, they need a solution urgently.”
“A key barrier that has prevented employees from saving more into pensions is they have been unable to visualise the difference that savings would make.”
“Next Generation Savings has changed this. People will see not just how much their pension is worth, but their whole financial universe including the value of their house, their bank accounts, investments, other savings accounts, and the implications for them, every time they make a decision to save.”
“When they log into myAspire and use our tools, they’ll understand exactly how much money they have spare for pensions, how they can adjust their finances to save more, and what their life will be like in retirement, if they save an extra £50, £100 or £300 a month today. It is designed to change behaviour.”
Punter Southall Aspire is rolling out Next Generation Savings to companies across the UK.
[i] Mintel, Workplace Pensions – UK – June 2017
[ii] Mintel, Workplace Pensions – UK – June 2017
[iii] Mintel, Workplace Pensions – UK – June 2017
[iv] Mintel, Workplace Pensions – UK – June 2017