There is a lot to be learnt from companies that have already auto-enrolled recommends Jayesh Patel, Towers Watson
As we move past the first six months of the auto-enrolment requirements, there are some lessons for companies to learn from those who have already had their staging date.
The biggest companies in the UK began to comply with the auto-enrolment requirements in October 2012 and many more will reach...
Research show there is a desire for greater choice in workplace savings on the part of both employers and employees says David Bird, Towers Watson
Employees have an appetite to have more choice over savings in the workplace. This was confirmed in our “Future of Workplace Savings” survey. Employers also feel offering more choice to their staff would highlight the value of the benefit to employees, particularly the group worried...
Ignore the implications of auto-enrolment for group risk benefits at your peril warns Jamie Winter, Towers Watson
As employers grapple with the significant compliance and pension issues arising out of auto-enrolment, it is all too easy to miss the implications for indirectly associated benefits such as group risk schemes and specifically group income protection and life assurance arrangements.
Although the...
Early indications are that inertia is working as a way of keeping people enrolled in a scheme says David Bird, Towers Watson
As I write, only a few of the largest enterprises in the UK have reached their staging date and have auto-enrolled employees into a qualifying pension scheme. With the overwhelming majority of schemes yet to reach their staging date, what are the key things that trustees and sponsors can learn from...
Guarantees offer reassurance to scheme members who do not want to gamble with their retirement income says Alistair Byrne, Towers Watson
Pensions minister Steve Webb has called on the industry to “move fast” in developing investment solutions that will give defined contribution (DC) members more certainty about the outcomes they will receive from their schemes.
“One end of the spectrum could be providing an...
Daniel Meehan, Towers Watson, explains how to guide your members towards the right income retirement decision
Defined contribution (DC) scheme members nearing retirement face an increasing array of retirement income options, yet in the main they are “blissfully” unaware of the options available. In fact, it is fair to say the majority of people will spend more time researching their next...
Darren Smith, Towers Watson, considers the impact auto-enrolment will have on flexible benefit schemes
It is well known that auto-enrolment will start to impact the largest employers as of October 2012. Many employers have already started this transition, or are at least setting out on the journey; few have considered the impact it will have on flexible benefit schemes (flex).
Some employers believe...
Rudi Smith, Towers Watson, poses some useful questions on the HR considerations of auto-enrolment
For many employers, the key initial focus has been on the cost of auto-enrolment. This is only natural, as the potential costs for some employers will be significant. This is not just restricted to the contribution costs themselves; it extends to the implementation costs which, for some employers,...
Guy Winter, Towers Watson, on auto-enrolment and DC governance
One of the clearest messages coming out of Towers Watson’s 2012 DC Governance survey is that most sponsoring employers are looking to use their existing defined contribution (DC) arrangement for auto-enrolling eligible employees not in a pension scheme. Only a minority are looking to set up a...
Contract based plans are stepping up to the mark as regards DC governance says Guy Winter, Towers Watson
Contract based arrangements are popular with many employers, offering a cost effective vehicle for investing company and employee contributions with the provider taking main responsibility for the administration, communication and compliance of the plan.
There is no legal requirement for employers...
What is an"adequate" pension? asks Amy Bell
With auto-enrolment, the majority of (private sector) workers will become members of a defined contribution (DC) plan. As employers prepare for auto-enrolment, many are considering what type of plan design to use. The number of new savers to workplace pension schemes as a result of auto-enrolment...
David Robbins, Towers Watson, delves into the detail of auto-enrolment and finds that not everything is as it appears.
If you see the Pensions Minister, Steve Webb, speak in public, there is every chance you will hear this joke – “2012 is going to happen next year”. He tells it well and it can be funny the first time you hear it.
Of course, it is only the largest employers for whom “2012...
Chris Smith and Andy Matthews, Towers Watson, on how to cut the number of poor decisions made by DC scheme members.
“DC is the future” is regularly quoted by every pension adviser working today, but the reality is “DC is the present” and we should recognise this. Unfortunately, this message is yet to be taken up by many and there are few defined contribution (DC) schemes that spend...
David Bird, Towers Watson, considers the trends in executive pensions beyond the pension tax changes
Executive pension provision has been dominated in recent times by the impact of changes in the taxation of pensions. It is not surprising, therefore, that the focus has been on the consequences of these changes. Tax is at the heart of why pension has become such an important part of executive...
Is reform damaging your employee value proposition or a chance to re-set the whole deal? asks Richard Veal, Towers Watson
The influence of pension reform is wide ranging in today’s society. Employers and the state need to create more sustainability, employees need to change their expectations and come to terms with the new reality.
In parallel to this, employers continue to evolve and improve the way they...
Trustees must help their members in choosing an annuity or face possible mis-selling claims warns Anne Carter, Towers Watson
In 2010, around £11bn of annuities were purchased by retirees from defined contribution (DC) schemes, but how many of those members fully understood what they were buying or the other options available to them?
As an illustration, of around 40–50% of retirees who might be eligible...
Paul Macro, Towers Watson, cautions against regarding Nest as the new default instead of simply another pension scheme option
Nest is seen in many quarters as being the post-2012 “default pension scheme” and that having your own “qualifying” scheme exempts one from having to use Nest. This is not the case. All employers will have to offer their employees a qualifying pension scheme and Nest is...
The Regulator may be about to prick the balloon of MasterTrust – but it could remain a viable option for trustees suggests David Bird, Towers Watson
Those of us who are long enough in the tooth to have seen the first coming of MasterTrust are asking themselves what the second coming might bring. Many people have some understanding of what happened in Australia, where MasterTrust now dominates the provision of retirement benefits. There seems...
Interactive modelling can help members with the challenge of achieving the retirement income they want suggests Clive Witherington, Towers Watson
This prophetic quote comes from the two-time former World Heavyweight Boxing Champion and Olympic gold medallist – George Foreman. George eventually retired, after several comebacks, with his last fight at the age of 49.
Retiring at 49 is, alas, not an option open to most, but the quote...
Will Aitken, Towers Watson, on the government’s proposals to increase governance requirements for contract based schemes
Next year, auto-enrolment into defined contribution (DC) pension arrangements will start in earnest. Research indicates that where auto-enrolment occurs, rates of investment defaulting can be as high as 90%. Consequently, quite soon, large swathes of the population will find themselves with money...
