Great Britain is heading towards a pensions ticking time bomb according to the Chartered Institute of Payroll Professional’s (CIPP) annual survey.
The shocking results have revealed the nation’s lack of planning for retirement. 36% aged 51-60 admitted they have no pension provision, a startling 66% of 20-24 year olds said they have made no pension plans, 30% of all surveyed were not even sure if their pension pot will be enough to live on and an alarming 24% surveyed said they were too young to even think about a pension.The results make for grim reading as the government does its best to encourage us to make provisions for the future. The survey also paints a worrying picture for the coming years, as the pressure of looking after the ageing population increases and the added burden of a lack of financial independence creates a financial time bomb. Lindsay Melvin, CIPP CEO, said: “In these uncertain economic times we would hope most people are thinking about their future, but these results show over a third of those towards the end of their working lives are not planning financially for their retirement and some are not even sure they will have enough to live on. With the government putting pensions at the forefront of its agenda it’s even more disturbing that so many people are taking a relaxed attitude.”
The survey results were revealed today as part of CIPP’s annual National Payroll Week (NPW). NPW helps shine a light on the role payroll can play in educating the nation – encouraging payroll professionals to think about how they can improve the financial understanding and wellbeing of their colleagues. Ian Dowd, marketing director at NGA Human Resources, said: “NPW is the perfect time for companies to look at where they stand in applying automatic enrolment legislation and evaluate the role payroll plays within their organisations. Payroll should be about much more than just making sure salaries are paid on time. This week, payroll professionals are encouraged to demonstrate their role within financial education and the wellbeing of employees. So it's a great opportunity to show the positive impact payroll can have on employees and on the nation.”
The survey also revealed a number of other interesting findings about payroll and the potential benefits from payroll departments, results included: 55% think saving through payroll would be a good idea; 26% are not offered any benefits through payroll deductions. Lindsay added: “It is clear to see the nation has a long way to go, but we must also consider the vital role employers play. By educating and offering solutions, such as saving through credit unions and paying into a pension via your payroll, employers can help their workforce become more financially savvy. The CIPP places education at the forefront of its agenda and believes it can help transform the nation’s financial future. However, NPW is also about realising the full potential of your payroll department by playing a proactive part in your employees’ wellbeing. These problems will not disappear overnight, but if boardrooms take notice of this warning we can all help tackle this ‘sleeping giant’ of a problem.”
