This is a warning from the Pensions Regulator
This is the result of a survey by Barnett Waddingham about what matters to employers when it comes to rewarding staff. It’s #1 and 2 in the priorities but let’s be clear, it’s not pensions that employers consider they are paying, it’s pension savings and contributions. Employers don’t need a stick , they need a pat on the back! 
Barnett Waddingham partner and head of platform and benefits Julia Turney said:
“It’s clear the past year has made employers realise that pension provision beyond the bare minimum has become a vital part of a well-rounded employee value proposition – elevating it from a compliance task to a strategic priority”.
It’s nice to consider “pension provision” is a strategic priority which may make CDC an important feature for employers going forward.
I suspect that a lot of employers outside the small number who speak to actuarial consultants like Barnett Waddingham are mystified by what their contributions go towards.
If not a pension – what?
81% of employers see helping their staff understand what is going on with the money paid into DC workplace pensions is noble. But I suspect that explaining the endgame as Corporate Adviser’s “Workplace Pensions into Retirement” lays it out, is a little daunting for all but a few daunty experts!
My heart goes out to the 1.5m employers in Britain who think they are providing staff with pensions because they are paying for them , but find they have nothing but pots to offer staff when they leave retirement.
Pensions are important but…
Staff aren’t getting pensions even when they leave work to retire!
We need a new way to think about and talk about what those contributions are doing.
The pension dashboard will explain pots as pensions but they won’t do the conversion.
It is time we had a new way of doing things and think about pensions from the day we start saving. We need to build up private pensions throughout life as we do the state pension and as those in public sector pensions.
Pensions are important but we aren’t getting them any more – certainly not in the workplace if we work in the private sector.
The lack of alignment from employers who think more than 80% of staff are getting a pension from them and the reality of what workers end up with is alarming. Employers do not need warnings that they’ll be fined , they need pensions to go to their staff!
