{"id":7476,"date":"2021-07-30T09:04:30","date_gmt":"2021-07-30T08:04:30","guid":{"rendered":"https:\/\/www.isio.com\/?post_type=insight&#038;p=7476"},"modified":"2023-12-13T13:19:44","modified_gmt":"2023-12-13T13:19:44","slug":"blog-18","status":"publish","type":"insight","link":"https:\/\/www.isio.com\/insights\/blog-18\/","title":{"rendered":"Workplace Savings &#8211; Isio Blog 18"},"content":{"rendered":"\n<section class=\"text-wrapper text-block  medium-width \">\n    <div class=\"container\">\n        <div class=\"acf-innerblocks-container\">\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/www.isio.com\/app\/uploads\/2023\/11\/image_2023-11-17_110214840.jpg\" alt=\"\" class=\"wp-image-7477\" srcset=\"https:\/\/www.isio.com\/app\/uploads\/2023\/11\/image_2023-11-17_110214840.jpg 800w, https:\/\/www.isio.com\/app\/uploads\/2023\/11\/image_2023-11-17_110214840-300x169.png 300w, https:\/\/www.isio.com\/app\/uploads\/2023\/11\/image_2023-11-17_110214840-768x432.png 768w, https:\/\/www.isio.com\/app\/uploads\/2023\/11\/image_2023-11-17_110214840-720x405.png 720w, https:\/\/www.isio.com\/app\/uploads\/2023\/11\/image_2023-11-17_110214840-95x53.png 95w, https:\/\/www.isio.com\/app\/uploads\/2023\/11\/image_2023-11-17_110214840-354x199.png 354w, https:\/\/www.isio.com\/app\/uploads\/2023\/11\/image_2023-11-17_110214840-366x206.png 366w, https:\/\/www.isio.com\/app\/uploads\/2023\/11\/image_2023-11-17_110214840-170x96.png 170w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<p>Workplace Savings &#8211; An Isio Blog<\/p>\n\n\n\n<p>Blog 18, July 2021.<\/p>\n\n\n\n<p><strong>Who\u2019s this for?<\/strong>&nbsp;Pensions Managers, Reward Managers and HRDs<\/p>\n\n\n\n<p>Within DC schemes, we have seen the traditional matched contribution design being taken up by typically older, well paid and disproportionately male employees. Whilst those receiving the minimum employer contributions are disproportionately younger, lower paid, female and part time employees. So what we actually have, at best, is something akin to an age-related design.<\/p>\n\n\n\n<p>This doesn\u2019t feel like a benefit system designed by an inclusive employer. However, employers and advisers flock to it, as that\u2019s what the competitor or sector benchmarking tells us.<\/p>\n\n\n\n<p><strong>Is it time to challenge whether this is the right thing to do?<\/strong><\/p>\n\n\n\n<p>Linked to this, the gender pensions gap is increasingly receiving more air time, and rightly so. But how are we ever going to address this in a world where there is still, on the whole, a gender pay gap alongside a pension benefit that is also linked to pay? This means that the pension system is just gearing up the effects of the gender pay gap.<\/p>\n\n\n\n<p>We also must not forget the role of State Pensions and the inequalities that continue to exist in that system. The effects are still being felt today. DWP\u2019s own analysis* in 2016 on changes to introduce the \u2018new State Pension\u2019 showed that in 2021 median gross State Pension income for females is expected to be around 82% of that received by males. The changes introduced by the new State Pension mean this income disparity is expected to be removed by the early 2040s (which is still about 30 years earlier than the previous system).<\/p>\n\n\n\n<p><strong>Considering the inequality in State and occupational pension provision, shouldn\u2019t we be looking to do our bit to help accelerate this change?<\/strong><\/p>\n\n\n\n<p>We are increasingly working with employers to understand how inclusive their designs are. Evidence from one client showed that young workers were opting out of their DB scheme. After investigating further this was due to employee contributions being prohibitive, standing in the way of their short to medium term financial goals.<\/p>\n\n\n\n<p><strong>So what could we do to offer a more inclusive pension design?<\/strong><\/p>\n\n\n\n<p>How about a non-contributory scheme for employees that removes the barriers to entry? Or perhaps targeting a flat-rate pension for all employees that provides a decent income in retirement, regardless of their level of income. The \u2018living pension\u2019 and PLSA Retirement Living Standards could be helpful reference points for establishing the level of target benefit.<\/p>\n\n\n\n<p>As employers, advisers and providers, we should all be playing our part to challenge the status quo and deliver a more inclusive pension system. So tell me again \u2013 why are pension benefits linked to pay?<\/p>\n\n\n\n<p>*Impact of New State Pension (nSP) on an Individual\u2019s Pension Entitlement \u2013 Longer Term Effects of nSP, DWP, January 2016<\/p>\n\n\n\n<p>Read more from the Isio DC Team in the guide below. If you want to reach out to the team, please contact us via contact@isio.com.<\/p>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-224c08d7-8006-4431-9026-1b34b5eb36e3\" href=\"https:\/\/www.isio.com\/app\/uploads\/2023\/11\/why-are-pension-benefits-linked-to-pay_-13.pdf\">Why are pension benefits linked to pay?<\/a><a href=\"https:\/\/www.isio.com\/app\/uploads\/2023\/11\/why-are-pension-benefits-linked-to-pay_-13.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-224c08d7-8006-4431-9026-1b34b5eb36e3\">Download<\/a><\/div>\n\n<\/div>\n    <\/div>\n<\/section>\n\n\n\n\n<div class=\"get-in-touch md:h-[250px] bg-no-repeat bg-bottom xl:bg-left-bottom bg-brandGreen-light py-14 md:py-0\">\n\t<div class=\"container text-white flex flex-col md:flex-row items-center space-between h-full\">\n\t\t<div class=\"flex flex-col xl:flex-row items-center md:items-start xl:items-center\">\n\t\t\t<h2 class=\"text-left text-5xl xl:basis-[400px] mb-8 xl:mb-0\">Get in touch<\/h2>\n\t\t\t<p class=\"text-2xl px-5 md:px-0 xl:basis-[320px] mb-6 md:mb-0\">Talk to us today to see how our bolder thinking can get you better results.<\/p>\n\t\t<\/div>\n\t\t<div class=\"flex flex-col xl:flex-row items-center\">\n\t\t\t\t\t\t\t<a href=\"tel: +44 (20) 7123 6000\" class=\"xl:w-[280px] font-semibold text-[26px] whitespace-nowrap\">+44 (20) 7123 6000<\/a>\n            \t\t\t                <a class=\"btn-primary btn-white whitespace-nowrap mt-6 xl:mt-0\" href=\"https:\/\/www.isio.com\/contact-us\/\" >Contact us<\/a>\n                \t\t<\/div>\n\t<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":7478,"template":"","meta":{"_acf_changed":false,"footnotes":""},"insight-category":[23],"class_list":["post-7476","insight","type-insight","status-publish","has-post-thumbnail","hentry","insight-category-benefits"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.8 (Yoast SEO v23.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Workplace Savings - Isio Blog 18 - Isio<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.isio.com\/insights\/blog-18\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Workplace Savings - Isio Blog 18\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.isio.com\/insights\/blog-18\/\" \/>\n<meta property=\"og:site_name\" content=\"Isio\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-13T13:19:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/\/app\/uploads\/2023\/11\/image_2023-11-17_110231661.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.isio.com\/insights\/blog-18\/\",\"url\":\"https:\/\/www.isio.com\/insights\/blog-18\/\",\"name\":\"Workplace Savings - Isio Blog 18 - Isio\",\"isPartOf\":{\"@id\":\"https:\/\/www.isio.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.isio.com\/insights\/blog-18\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.isio.com\/insights\/blog-18\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.isio.com\/app\/uploads\/2023\/11\/image_2023-11-17_110231661.jpg\",\"datePublished\":\"2021-07-30T08:04:30+00:00\",\"dateModified\":\"2023-12-13T13:19:44+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.isio.com\/insights\/blog-18\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.isio.com\/insights\/blog-18\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.isio.com\/insights\/blog-18\/#primaryimage\",\"url\":\"https:\/\/www.isio.com\/app\/uploads\/2023\/11\/image_2023-11-17_110231661.jpg\",\"contentUrl\":\"https:\/\/www.isio.com\/app\/uploads\/2023\/11\/image_2023-11-17_110231661.jpg\",\"width\":800,\"height\":450},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.isio.com\/insights\/blog-18\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.isio.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Insights\",\"item\":\"https:\/\/www.isio.com\/insights\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Workplace Savings &#8211; 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