Great piece in Professional Pensions. Lee Hollingworth of
Hymans Robertson is correct in saying ‘people need a strong, direct approach to
tell them what ‘adequate’ is, what they need and how they’re doing against that
target’.
The comment comes following analysis by Hymans Robertson via their Guided Outcomes platform which shows only 18% of over one hundred thousand defined contribution members are likely to build an adequate retirement income.
Apathy has done well for us. The new auto-enrolment approach relies on it for getting members into pension plans. But that’s just the start. If the employer stops with the minimum, then pensions at retirement will be inadequate, and as Hollingworth says, poor pension results will lead to ‘workforce management issues’.
We are going the right way with UK pensions. Auto-enrolment was needed. But that’s just the start.
The comment comes following analysis by Hymans Robertson via their Guided Outcomes platform which shows only 18% of over one hundred thousand defined contribution members are likely to build an adequate retirement income.
Apathy has done well for us. The new auto-enrolment approach relies on it for getting members into pension plans. But that’s just the start. If the employer stops with the minimum, then pensions at retirement will be inadequate, and as Hollingworth says, poor pension results will lead to ‘workforce management issues’.
We are going the right way with UK pensions. Auto-enrolment was needed. But that’s just the start.
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