The employee benefits firm said over half (58%) of participants at its recent webinar said they believed enhanced employer contributions were the main factor in driving member outcomes.
But Howden head of corporate consulting Matthew Gregson said “reaching for the cheque book” was not a viable solution.
Instead, he said a new data-drive governance model for employers to engage “zombie investors” who make no active choices about their pension investments is needed.
“To encourage better pension engagement employers need to become more scientific and use data to drive greater member outcomes,” Gregson said. “Rather than look at pension governance as a tick box exercise, it should be used to look at the detail and identify which employees need which guidance and support.”
Employers’ ability to pay enhanced contributions “has always been a challenge”, senior workplace pension consultant Jonathan Brown added. “Even more so now with the economic conditions…