Pensions  

Savers need more support on what to do with a bonus

Amy Austin

Amy Austin

By doing this it could mitigate the risk that people will stick their money into a cash Isa where money could be lost in the long-term if the interest rate on the account does not keep up with the rate of inflation.

Or more simply, employers could encourage people to use their bonus to pay for advice to see what investments they should be making or how they can prepare better for retirement.

No matter what people do with their bonus, at the very least people should be educated on these various options available to them.

It is down to the industry as a whole, as well as employers, to start making these options more widely known.

It is not enough to simply say that people do not save enough for retirement early on if the industry and workplaces are failing to make people aware of all the savings options available.

After all, the workplace is the best place to reach savers and encourage them to take their money further, so why are we not utilising this?

Amy Austin is news editor at FTAdviser