On the 15th of September, it’s Pension Awareness Day. You may not know everything about pensions, and your people may not either. But it’s something that affects everyone and is vital to many peoples future. Here at Each Person, we are more than just an employee reward scheme. So, we’ve put together this blog to help you know why your people should save into a pension.
What is a Pension?
In short, a pension isn’t something daunting. It’s a way of saving for your future after you’ve finished working. According to Money Helper, it’s vital to save from any age to make sure you are financially ok later in life. After all, financial wellbeing is incredibly valuable now more than ever.
In addition, when you save for a pension, you receive tax reliefs that would originally have gone to the government. These tax reliefs go into your pension instead.
Why is a Pension Important for Your People
It is no surprise that pensions are crucial for people. However, many still don’t know why or chose not to. Here are some reasons why saving into a pension is necessary for your people, and also yourself.
Plan for The Future
No one knows what will happen in the future, including when you can retire and what you will be doing. A long term savings plan can help cover your future life. You can usually access your savings from the age of 65. So, if you retire after, then your money is yours to use on living costs.
A lot of people are worried about their financial wellbeing. Money is one of the top causes of stress. COVID-19 has made this all the more true. Therefore, when your people have a pension, this anxiety is significantly less. Additionally, they can focus on the present and have higher levels of productivity and employee engagement. It’s not necessarily a worry that is at the forefront of your people’s minds. However, it will still significantly help them prepare.
When your people pay into one, you as an employer also pay. One of the many perks at work that you can offer. So, it is a good idea for your people to pay, so that you can receive this additional income. Without this, the sum of the pension may be smaller.
To summarise, pensions aren’t scary, and the more your people know the better. By paying into a pension, it will steadily increase for several reasons helping to prepare for the future. You need to help your people so that they can focus on their work and their day to day life.