It’s time to shout about exceptional pension schemes

In the world of workplace pensions, excellence deserves recognition.

For pension funds, it’s not just about meeting regulatory requirements – it’s about enabling employers to deliver schemes that truly stand out. Employers who go above and beyond the statutory minimum are doing more than securing better retirements for their employees – they’re setting a benchmark for the entire industry.

This presents a golden opportunity for pension funds to lead the way in promoting high-quality schemes. By helping employers communicate the value of their pensions, funds can improve outcomes for savers and celebrate strong provision.

Why exceptional pension schemes matter

Pensions are one of the most meaningful benefits for employees. As we know, not all pension schemes are the same – the investments, the contribution levels and the type of pension can vary quite dramatically across different workplaces.

While automatic enrolment has been a game changer, the current minimum contribution of 8% falls short of what’s needed for an adequate retirement for most workers.

Pension funds have a vital role in pushing the industry forward, encouraging employers to exceed these minimums and show their schemes as competitive advantages for recruitment and retention.

Employers with exemplary schemes should be shouting about them, and pension funds are perfectly positioned to amplify these success stories.

What the best schemes are doing

The best pension schemes aren’t just ticking the boxes - they’re setting new standards. These schemes typically feature:

• Higher contributions: Many leading employers are already exceeding the auto-enrolment minimum, contributing 6% or more. These enhanced contributions are critical for securing better retirement outcomes, particularly for employees who started saving later in life.

• Matching contributions: Some schemes reward employees for saving more by offering matching contributions. For example, if an employee voluntarily increases their contribution, the employer matches it up to a certain limit, significantly boosting the employee’s pension pot.

• Clear communication: The best schemes don’t just provide financial support – they ensure employees understand the value of their pensions. Clear, accessible information and regular updates help employees see their pensions as a vital part of their financial future.

• Additional benefits: Exceptional schemes often offer flexibility, such as options for additional voluntary contributions or access to financial advice and planning tools, empowering employees to take control of their retirement planning.

What pension funds can do

As the pensions landscape continues to evolve, the role of pension funds is more critical than ever. From driving innovation to supporting employers with practical tools and expert advice, funds have the power to shape the future of workplace pensions.

Pension funds should focus on:

• Promoting excellence: Share case studies and success stories of employers offering standout schemes, inspiring others to follow suit.

• Educating employers and employees: Provide resources and training to ensure both employers and their workforces understand the value of their pension schemes and how to maximise them.

• Advocating for change: Work alongside the government and industry bodies to push for higher contribution levels and better outcomes for savers.

The government is also sharpening its focus on pensions, and providers and funds must stay alert to the potential impact of upcoming reforms.

The ongoing Pensions Review is expected to explore ways to ensure pension schemes deliver better outcomes for savers. While changes won’t happen overnight, they could significantly reshape the pensions landscape in the coming years.

Shout about it!

Pension funds should take every opportunity to celebrate outstanding schemes. By highlighting the success of top-performing pensions, funds can drive meaningful change, improve outcomes for savers, and cement their role as leaders in the industry.

In an increasingly competitive world, exceptional pension schemes are a powerful differentiator.

For those already leading the way, shouting about their success isn’t a marketing tactic – it’s a way to inspire others, set new standards, and ensure financial stability at retirement for millions more people.

Zoe Alexander is director of policy and advocacy at the Pensions and Lifetime Savings Association.