Standard Life urges employers to rethink pension provision

Employees are disengaged with their retirement planning and pensions in general. Final salary schemes are closing and defined contribution schemes have lost up to 40% of their value over the past 12 months. Against that backdrop, the UK population is ageing fast with, for the first time, the over 65 year olds outnumbering the under-16s.

Andrew Dickson, Senior Business Development Manager, Standard Life commented: "Employers are having to navigate their way through the 'perfect storm'. They face challenges around budgets, with benefit spend being squeezed while trying to retain talent through these difficult times. Against this backdrop, the UK population is also ageing fast presenting additional challenges around the need to review benefit design .

"The challenge for employers will be to develop a benefits package which treats all employees as 'consumers' as opposed to just being a 'member'. Employers need to move away from simply focussing on encouraging participation through accumulating pension assets, and learn to engage with their staff treating them like consumers.

"UK pension provision in the future will be one where flexibility at both the saving and retirement stages are fully supported by employers."