Financial Education is high on many corporate agendas and there are a significant number of events covering this topic. I wanted to take a different approach and focus on what the objectives, deliverables and outcomes from the education are.

An example is the workplace pension scheme. For many employers, this is the most expensive benefit to provide. But, how many employees within your organisation:

• Have taken the time to decide on a target income and age as to when they may start to draw their retirement income?
• Know how to measure if they are on track and review their progress regularly?
• Understand and appreciate the employer contribution – that will help the employee reach their target?
• Have reviewed their investment choice and switched out of the workplace pension ‘Default Fund’ so that this aligned to their risk profile / desired option when taking the benefits (i.e. Cash / Annuity / Flexible)?
• Are using the functionality / tools that are available to help with the above?

There is no point in implementing a programme if the employee is not going to, or does not know how to move forward, make decisions and take some positive action.

I have designed a programme that creates an environment where your workforce will ‘want’ to do this, rather than being ‘told’ to.

What are the benefits?

Employer:

• More engaged employees
• ‘Bridges the gap’ between your employees and your pension provider
• Higher employee appreciation of the pension scheme – important in view of the cost of employer contributions
• Potential savings in National Insurance through increased employee contributions via salary sacrifice
• Better performing employees in view of lower stress levels – see below under ‘Employees’
• The programme could be incorporated into your new joiner process to attract quality employees
• Supports HR agenda as regards trying to avoid an ‘ageing workforce’ by helping employees fund for their retirement
• Increased Corporate Governance – demonstrating to The Pensions Regulator you have provided increased support and education (including Default Fund versus other investment options)
• Option of extending to a more holistic programme i.e. to include other benefits (e.g. Group Life) to improve appreciation and understanding of all employee benefits
• Can compliment any existing adviser relationships / workplace pension provider.

Employee:

• More engaged with the pension scheme and planning for a future income and lifestyle
• Better understanding of the workplace scheme and the options available
• Empowered and in an informed position to make decisions
• Happier, less stressed as have a better understanding, in more control of finances and have a plan for their future income and lifestyle.

The value of a pension with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise.  You may get back less than the amount invested.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.