A new research report named ‘It’s Time to Change’, from Punter Southall Aspire - a major investment and savings business - offers UK companies fresh look into how HR, pensions and benefits professionals can change their pensions communications.

Employee communication is an essential part of business and HR's role and valuable internal communication develops confidence within organisations, showing an important influence on employee productivity. However, research by CIPD implies that many employees feel they receive limited or very little information.

In compiling the report, Punter Southall surveyed over 2000 employees aged between16 and 65+, from across the UK. From that survey, they were able to pinpoint four major issues affecting pension savings.

• The research found that current finances are of more concern than looking to the future - the reason for this being that many have competing financial pressures - a loan or credit card debt. It was found that 30% regularly use an overdraft facility and 45% financially support dependants. Eighty eight per cent stated that they would prefer to have £400 now as opposed to £800 in the future and would be more likely to react to communications reflecting that.
• People are also failing to think about their future retirement. Nearly half say their biggest worry for the future is not having enough money in retirement, but almost a third confessed that retirement is not part of their current financial planning and 66% said they are unaware if their savings will prove sufficient for retirement. Seventy eight per cent of people are budgeting monthly and only 28% claim to stick to their budgets.
• The survey found that nearly one in five respondents aged 16 to 24 did not know if they have a pension and 30% did not think that a pension is important. Thirty two per cent surveyed were not aware of their contribution rate, stating that it was the amount set by their employer.
• A major discovery of the report is that employers need to do more to guide and support their workforce. It was found that 82% of those surveyed want their employers to steer them in a positive direction about pensions and 72% would welcome education in planning for the future - 68% want their employer to remind them to review their pension and take action, if necessary.

The research also found that only 38% of respondents stated that they would respond to scare tactics in pension communications but 76% would react to exciting messages. This drew attention to the need for companies to use positive and relevant messaging and emphasise the benefits of saving more. The research also showed that the people’s attention was drawn to powerful imagery, humour, moving words and colour in communications.

 Johanna Nelson - Associate Director of Punter Southall Aspire - stated:

“From a communications perspective, employers can tackle these issues and increase pension awareness with a constant ‘savings drumbeat’ – using regular positive messages that encourage better savings behaviour. People are more concerned with now rather than then, so companies can tap into this by providing financial education on issues that concern them such as debt management or budgeting. The positive benefits of pensions and auto-enrolment can be introduced as part of this conversation.”

She added:

“There is a real need for employers to improve their pension communications and this means getting proactive and stop relying on the material produced by pension providers. Arguably employers have a duty of care to help ensure employees have a positive retirement and are in a strong position to make this happen. Employees want financial education and guidance on current and future financial issues and by promoting positive communications and financial education they can encourage a savings culture."