Workplace pensions, as traditionally perceived, leave much to be desired. They have become synonymous with inefficiency, subpar returns, and a drain on team morale. While the idea of auto-enrolment stands tall as a commendable government initiative, ensuring a comfortable life for retirees’ post-employment, its execution seems to be falling short.
The team at Penfold believes that the current workplace pensions system isn’t just a challenge for employees, but also for employers. Let’s break down some of the key concerns.
HR Teams and the Workplace Pension Dilemma
Many pension providers offer minimal guidance to employers when introducing a workplace pension. The responsibility often falls squarely on the employer’s shoulders to navigate the intricate compliance landscape of auto-enrolment. This involves deciphering a myriad of terms such as opt-ins, opt-outs, postponement periods, and many more.
Moreover, HR departments, instead of focusing on pivotal HR tasks, find themselves swamped with pension-related queries. These questions ideally should be directed to the pension providers. However, reaching out to these providers often proves to be a Herculean task, perpetuating the cycle of inefficiency.
A Changing Workplace Landscape
Traditional pension structures were crafted during times when an individual typically remained loyal to one employer throughout their career. The modern worker, however, is predicted to change jobs 11 times or more, potentially juggling multiple pension pots from various providers. This presents a range of issues such as managing and transferring these pensions and maintaining updated personal details.
In the UK alone, around £20 billion worth of pensions go unclaimed, with providers profiting from these dormant funds. As the gig economy strengthens and career dynamics evolve, the traditional pension system is lagging behind.
Engaging the Modern Saver
One of the glaring flaws in today’s auto-enrolment process is its inability to genuinely engage savers. Antiquated login portals, scant communication, and sluggish customer service deter many from actively managing their pensions. In a world accustomed to the convenience of fintech platforms, expecting individuals to tolerate these dated practices is unrealistic. Furthermore, most pension providers miss the mark in communicating the actual purpose and potential of pensions.
Questioning Fund Performance
When scrutinising the offerings of leading providers, one may discover that many are not just mediocre, but disadvantageous to everyday savers. Outdated investment strategies and a lack of clarity on maximizing returns pose significant obstacles.
The High Cost, Low Engagement Dilemma
Employers invest a considerable sum into workplace pensions, often without achieving the desired employee engagement. For a benefit that incurs significant expenditure, the return in terms of employee loyalty and satisfaction seems minimal.
Introducing Penfold Workplace
Penfold has taken a fresh approach, redesigning workplace pensions to be more relevant to today’s lifestyle and employment patterns. This includes:
- A pension app that provides a mobile-first pension experience.
- A pension system that feels like a benefit and not a bore.
- Increased value for both employees and employers.
- Simplified auto-enrolment systems and processing.
- Dedicated human support whenever necessary.
- Ethical investment options that make a global impact.
- Portability that adapts to career changes.
Learn more about how Penfold’s auto-enrolment scheme redefines workplace pensions for the modern era.
If Penfold’s vision resonates with your business values, book a demo today and their dedicated team will gladly guide you further.