We use cookies to improve site performance and enhance your user experience. If you'd like to disable cookies on this device, please see our cookie management page.
If you close this message or continue to use this site, you consent to our use of cookies on this devise in accordance with our cookie policy, unless you disable them.

Close
In association with

Home > Opinion > FTAdviser Blog > Mark Taylor's blogs

FTADVISER BLOG

Letter: The critical role of the employers in pensions

Letter to editor – Financial Adviser in response to article entitled ‘Workers will need to make additional pension savings’ on August 16 2012.

By Mark Taylor | Published Aug 29, 2012 | comments

Mr Dixon’s views that ‘Workers will need to make additional pension savings’ and ‘employers should support their employees’ are entirely true and need greater recognition. We need to take a long, hard look at how pension funding works and whether current solutions are ‘fit for purpose’ for all employees.

While there has been a huge move to make pensions more flexible and member-specific and our industry understands the need for an income in retirement, members may prioritise a roof over their head, or even a holiday or a car, over their pension.

With almost 300,000 people in the last decade having their home repossessed, two in five marriages failing, and 7 per cent of children being educated privately, we can perhaps see why an event that is often decades away is not high priority.

Auto-enrolment will have a positive impact but, with over a third predicted to opt out, it won’t be the total solution and we need to look at a blended approach to pre and post-retirement solutions.

Employers could and should play a critical role in providing products to support this approach and, along with pensions, they can support medium-term savings of 5-15 years, with a view to this rolling into pension savings.

As typically a company-sponsored savings vehicle, a Corporate ISA can sit extremely well alongside an auto-enrolment proposition and could help reduce the number of people opting out of saving. In the absence of compulsion, the key for retirement funding is getting people into the savings habit early and accepting that pension saving is not everyone’s highest priority.

Mark Taylor

Director of Investment Services

Equiniti

COMMENT AND REACTION

Our Columnists

Hal Austin

Hal is editor of Financial Adviser and has been for more than a decade. He has previously worked on a number of local and national publications.

Ashley Wassall

Ashley is editor of FTAdviser and writes on all areas of retail finance. Previously supplements editor at Money Management and editor of a European private equity publication.

John Kenchington

John is editor of Investment Adviser and has written about investments for several years. He has worked at titles including City AM and was recently named in the MHP 30 To Watch list of up-and-coming media names.

Jon Cudby

Jon is editor of Money Management and has 12 years' experience covering retail personal finance. In 2005, Jon was launch editor of FTAdviser and most recently he was head of online content for Incisive Media's financial services titles.

Tony Hazell

Tony is a freelance financial journalist, having been editor of Money Mail at the Daily Mail for a number of years. He has been writing a column in Financial Adviser since 2005.

John Lappin

John is a weekly contributor to Investment Adviser with 15 years’ experience in financial journalism and 10 years writing on the IFA sector. He was formerly editor of an IFA trade magazine.

Most Popular
More on FTAdviser
FTA jobs
  • PARAPLANNER

    Location: Horsham, West Sussex

    Salary: £30,000 basic + bonus (OTE £50,000)

  • Financial Planner

    Location: Cheshire

    Salary: To £36,000 + Car (BMW or Mercedes) + Benefits + Bonus

  • IFA

    Location: Cambridge

    Salary: £55000 - £75000 per annum