
Chamber report explores pension reform amid cost challenges
Date published:
The Chamber has today (8 January) released a report which explores workplace pension challenges amid the cost of living crisis and proposed government reforms.
The Pensions Report for the North East offers practical insights to help businesses navigate financial challenges while supporting their workforce.
The report, which includes contributions from the region’s leading businesses, highlights opportunities to enhance employee engagement, productivity and retention through effective pension strategies.
John McCabe, chief executive at the Chamber, said: “As part of the Chamber’s goal to create a stronger, fairer North East economy we have consistently highlighted the importance of financial wellbeing in the workplace.
“If we want the North East to fulfil its true potential, we must support our employees. Not only do we have a moral duty to look after those who work for us, we have an economic one too.
“Improving employee wellbeing makes businesses more productive and in turn supports the prosperity of our regional economy.”
Our report comes after the Pensions and Lifetime Savings Association (PLSA) called for reforms to the UK’s pension savings system to ensure that savers do not see their living standards fall in retirement.
The PLSA has recommended that over the next decade, contributions should rise gradually from 8% to 12%.
Iain Lightfoot is the managing director of Newcastle Financial Advisers Limited, a financial advice subsidiary of Newcastle Building Society.
Iain commented: “The proposals seek to improve pensions outcomes for individuals, and with that comes the need for employers to plan ahead, including managing the additional financial burden.
“However, there are also clearly opportunities for businesses to benefit from reform of the pensions framework, and the advantage will fall to those who are best prepared for change.”
The report highlights strategies to reach under-pensioned groups, such as women and the self-employed, as well as encouraging younger employees to save into a pension.
Stuart Fearn MBE, non-executive director at Society Matters Group, said: “While the prospect of higher pension contributions may seem daunting amidst the cost of living crisis, it’s a necessary step towards securing a brighter financial future for all.
“By balancing the immediate needs of individuals with the long-term benefits of increased retirement savings, we can navigate this challenging landscape together, ensuring that everyone can retire with dignity and financial security.”
The Pensions Report for the North East aligns with our stronger, fairer North East policy plan which includes practical actions leaders and businesses can take in partnership to deliver fair and inclusive growth for the North East and the UK.
We will continue to work with our members and the British Chambers of Commerce to promote financial wellbeing in the workplace and support businesses through the cost of living crisis, as well as any impact of potential pension increases.
Click here to view our Pensions Report for the North East.