Staff remain loyal to company pension providers

by Gill Montia

Story link: Staff remain loyal to company pension providers

A recent survey by the National Association of Pension Funds (NAPF) has revealed that in terms of workplace benefits, a company pension is the most important incentive an employer can offer.

Occupational pensions can also benefit a business in terms of staff loyalty, with 49% of employees questioned saying they would feel greater loyalty to their employer if offered a workplace pension.

The figures have a gender bias in that men value company pensions more than women, with female employees prizing flexible working arrangements above pension benefits.

However, while 75% of employees believe that it is important to have a company pension, only 48% are confident that it will provide a better income in old-age than other forms of retirement saving.

NAPF Chief Executive, Joanne Segars, comments: “Today’s workers still value pensions as a fundamental part of their employment package and believe they remain the best way to save for retirement. For employers there is a clear message that providing a workplace pension is rewarded by increased employee loyalty.”

Meanwhile, Standard Life is warning Britons who plan to sell their homes to release funds for retirement that they may be in for a disappointment.

For example, equity of £150,000 could equate to a weekly income of only £130, while downsizing from a bungalow to a flat and taking a £25,000 profit could bring in only £22 per week.