More people than ever are joining employer sponsored pension schemes. Whilst this is encouraging news, joining by ‘default’ in reality means that employees do not have to make decisions or choices to enable membership.
The factors that will have the greatest impact on an individual’s retirement fund are determined by the decisions they make; investment, contribution and retirement choices.
Despite auto-enrolment, one of the biggest challenges for pension sponsors is getting people engaged with saving for their futures. Many members have low levels of engagement with, and understanding of, pensions.
As an employer you should be regularly checking to make sure your communications are making an impression on your members and prompting them to act.
Your pension provider will have various forms of governance in place. Reviewing the investment strategy and the default investment fund regularly will help ensure they meet the needs of your scheme members.