Archive for April, 2014

Health benefits are key to staff motivation

Posted by Sam Binstead

Half of full time employees think health benefits packages improve their job satisfaction, according to research by Investors in People.

The poll found that happy employees were seven per cent less likely to take an unnecessary sick day than their unhappy colleagues.

The poll found that:

  • 80 per cent would feel more positive towards their employer if they offered better health and wellbeing benefits
  • flexible working hours was the most sought-after benefit with 43 per cent saying it would improve job satisfaction
  • health insurance (41 per cent), dental insurance (23 per cent) and career breaks (10 per cent) were other popular ways to increase employee happiness.

Paul Devoy, head of Investors in People, said:

“Organisations need to see staff health and wellbeing as crucial to their business and staff retention. Companies offering health and wellbeing perks will see real business benefits.”

In a separate survey by Westfield Health, 74 per cent of employees said knowing their employer cared about their health would increase workplace motivation.

Paul Shires, executive director of Westfield Health, said:

“It’s clear that employers that adhere to the three Cs – consult, communicate and care – are going to have a healthier and happier workforce as a result.”

1 in 5 adults have no savings

Posted by Sam Binstead

Nine million people, or one in five UK adults, had no savings in 2013, a YouGov survey for Scottish Widows has revealed.

The survey of 5,000 people found that 67 per cent of UK adults had savings last year, the lowest level since 2011. A further 15 per cent said they didn’t know how much they had put aside.

Half of the survey’s respondents said they were saving less than they were two years ago.

The report found that family pressures have a big impact on savings:

  • 41% reported lending ‘a substantial amount’ of money to family members
  • a quarter of people lent money to their children
  • 17% said they had reduced living costs due to family lending.

David Lascelles, savings expert at Scottish Widows, said:

“It is promising to see that among those who are saving, the amount they have put aside has risen year-on-year. However, it is concerning that despite economic improvements, the number of people who are able to set something aside for a rainy day is actually falling.”

Of course, the government are trying to encourage savings with the recent Budget changes to ISA rules which will see the annual ISA allowance increase to £15,000 from July. For a no obligation review of your savings & investment strategy, please contact us.

It’s time to take control of your pension

Posted by Sam Binstead

Although there is no bad time to review your retirement arrangements, with all the changes taking place in the sector, now is a particularly appropriate moment to ensure you are making the most of your pension.

Lost and found
Research conducted by Age UK has found a quarter of UK adults have lost track of at least one pension accumulated during their careers. The average individual aged over 65 has worked for at least five employers – and a quarter of those aged between 25 and 34 have already worked for a similar number. Given this, we are more than likely to have several different pension pots. To trace a missing pension, try contacting the Pension Tracing Service at https://www.gov.uk/find-lost-pension or call 0845 6002 537.

Consider your options – but take care
If you have several different pension pots, you might consider consolidating them into one. Most occupational and private pension schemes can be transferred and consolidating all your pension savings could cut administration and paperwork, make it easier for you to track the performance of your pension pot and may also reduce costs. But you should take advice – once made, the decision to switch is irreversible and a wrong decision could incur harsh penalties. Chilvester can help you with this.

Take a closer look
Every year, your pension provider should send you a statement showing the current value of your pension pot, and a forecast of what it will be worth when you reach your retirement age. Don’t just file it away – take a closer look. Does the projected value of your pension pot bear any relation to the amount you are aiming for? If not, consider what action you could take to boost its value – perhaps you could boost your pension contributions or you might have to end up working for longer. At present you can pay up to £3,600 or 100% of your earnings, whichever is larger, into a pension every year and receive tax relief on contributions of up to £50,000 (reducing to £40,000 for the 2014/15 tax year).

Focus on the future
Finally, we may talk about “retirement age”, but do you actually know your state pensionable age? Not so long ago, men used to retire at 65 and women at 60 but times have changed. The age at which you become eligible for your state pension – and the amount you receive – is determined by your National Insurance contributions. Find out more using the government’s State Pension Calculator at https://www.gov.uk/calculate-state-pension.

For help with your retirement planning, contact Chilvester to arrange a free initial consultation.

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