Brexit may boost engagement in retirement planning
Employers are expecting Britain’s exit from the EU to impact employees’ pensions and pension planning, according to research by Close Brothers Asset Management. Only 9% of companies think the vote will have no impact on its staff.
Resisting the trend of negativity surrounding Brexit, many businesses said they believe Brexit could actually boost employees’ engagement with their pensions. When asked about the effects of the Brexit vote on their employees, nearly half of the businesses surveyed (43%) said they believe Brexit will increase employee engagement in retirement planning, just over twice as many as those who think it will lead to employees becoming disengaged from retirement planning (21%).
Moreover, 1 in 4 employers (26%) think that the vote will lead to staff increasing their pension scheme contributions, compared to just 1 in 5 who believe it will result in staff decreasing contributions, according to the poll of 259 companies across the UK.
The research also found that over half of employees (53%) are concerned over their own future financial security, with individual concerns including uncertainty about what to do with pension savings (41%) and uncertainty about how to make the best decisions when accessing pension benefits (56%).
Jeanette Makings, Head of Financial Education Services at Close Brothers Asset Management, said, “The long term impact of the Brexit vote continues to be a source of speculation for the UK, affecting employers and employees alike. As a consequence, businesses that take steps to quell uncertainty and provide their staff with the tools to take control of their financial future will reap the benefits; staff will be more reassured, more engaged and more productive.
“With any significant market or legislation changes, employers are in a great position to raise awareness and understanding and to provide access to further help and support their staff can improve their financial wellbeing now and for their future. Doing this will not only benefit staff, but also the business bottom line.”