 |
|
 |  |  |  |
 Workplace pensions are one of employers’ most powerful tools to support their people’s financial wellbeing, engagement and long-term retention. But despite often being the single largest employee benefit cost, many schemes run on autopilot - offering limited insight into the value they deliver for the business or its people. Employers stand to gain far more when they treat pensions as a strategic asset with significant value and not just another expense on the balance sheet. |
By Jeni Flanagan, Principal and Senior Client Relationship Manager and Hugo Gravell, Principal and Investment Consultant, Barnett Waddingham Research from the Department for Work and Pensions (DWP) 2024 employer survey shows that 82% have not switched or considered switching pension providers - a sign that complacency may be widespread. Why now is the time to rethink your pensions
With rising costs and increasing regulatory pressure, employers can’t afford to treat pensions as a tick-box exercise. Forward-thinking organisations are re-evaluating their approach and seeing the bigger picture, recognising that pensions can deliver real value.
At BW, we work with you to turn your pensions into a strategic advantage - shaping a scheme that’s fit for the future, for both your business and your people. This shift has come at a good time. The defined contribution (DC) market is consolidating, a new Value for Money framework is emerging, and regulatory expectations are climbing, with growing scrutiny from The Pensions Regulator (TPR) on reporting, transparency, and member outcomes. To deliver real value, schemes need to perform well across three core areas: 1. Suitable investment design When pensions underperform, everyone feels it
If these foundations aren’t in place, the consequences can be significant. Weak investment performance can leave employees financially unprepared for retirement, leading to delayed retirements and productivity challenges. Poor provider service or unclear communications can frustrate staff and erode trust, undermining morale and retention. Meanwhile, low engagement and administrative issues can diminish the value of pension schemes as effective tools for wellbeing and workforce retention.
Demographic change adds additional complexity. An ageing, multi-generational workforce can increase benefits costs and financial strain if employees delay retirement. For example, according to The Health Foundation, 27% of people aged 50–64 report have a work-limiting long-term health condition, compared to just 16% among 16–34 year-olds. Failing to tailor your strategy and adopt a dynamic approach can leave both your people and organisation exposed – from higher workforce costs to missed opportunities to drive better outcomes. In a changing landscape, standing still can quickly mean falling behind. What does ‘good value’ look like?
Determining if a pension scheme is fit for purpose and delivers value requires a multi-dimensional perspective. While investment performance is important, it represents only one part of the picture. Schemes should be evaluated across investment, administration and engagement through three key lenses:
Outcomes: Does the investment strategy deliver inflation-adjusted returns that meet members’ long-term needs? Does the administration enable members to access their benefits how and when they choose? Strategic fit: Do the scheme’s investment and engagement strategies align with the organisation’s workforce profile, risk appetite, and retirement objectives? Capability: Is governance and management effective, ensuring the scheme can respond quickly to rising expectations from regulators and members alike? The pace of change in pensions continues to accelerate. New regulatory standards, shifting member expectations, and innovation in investment strategies are constantly redefining what ‘good’ looks like. What is considered value today may quickly be outdated tomorrow. Therefore, we recommend employers undertake regular health checks and market testing at least annually to ensure schemes remain competitive and aligned to future needs. Common pitfalls to avoid
Placing too much emphasis on a single metric, such as cost savings or short-term investment gains, can skew decision-making and overlook long-term suitability. Likewise, relying on league tables without exploring the reasons behind a scheme’s ranking can be misleading too. Employers also sometimes underestimate the importance of administration quality and member engagements, which are vital for trust and participation. Also, without stress-testing performance during periods of market volatility, weaknesses may remain hidden until they cause significant problems.
Working smarter with pension providers
Maximising pension value requires a collaborative relationship with providers. Employers must set clear objectives from the outset and maintain regular communication to hold providers accountable.
Expert-led advice from independent advisers can add real value here - offering deep market insight, benchmarking performance, and ensuring schemes evolve in line with regulations, trends, and member needs. Five practical steps to take to maximise pension value
Define clear objectives: Decide what success looks like – whether that’s improving retirement outcomes, boosting engagement, or managing costs.
Strengthen governance: Hold regular review meetings covering investments, administration, engagement, and compliance, and publicise this activity to employees.
Access independent insights: Use market benchmarks and DC pensions expertise to inform decision-making.
Hold providers accountable: Ensure delivery of agreed services, tools, communications, and innovations.
Plan escalation strategies: Act early on underperformance or emerging risks, supported by data and adviser input.
Putting these steps into practice not only ensures compliance but builds resilience, trust, and long-term value. A strategic advantage for employers
Today, pensions can be a true differentiator - a visible signal of a company’s long-term commitment to its people. Managed well, they support timely retirements, reduce workforce costs, and deepen engagement and loyalty. Our At Retirement Reckoning research shows that when thinking about retirement, the workplace pension is the most important financial element – 55% of people think it's critical. The right pension strategy doesn’t just protect the future; it helps power the business today.
|
|
|
|
| Investment DB Actuarial Analyst | ||
| Flex / hybrid 2 days p/w office-based - Negotiable | ||
| Actuarial Reserving Manager | ||
| London / hybrid 2 days p/w office-based - Negotiable | ||
| Senior Associate - Trustee Pensions | ||
| Nationwide / hybrid 1-2dpw office-based - Negotiable | ||
| Head of MA and Investment Business Pa... | ||
| London/Hybrid - Negotiable | ||
| Actuarial Pricing Analyst – Specialis... | ||
| London / hybrid 1 dpw office-based - Negotiable | ||
| Pricing Pioneer | ||
| Flex / hybrid 2-3 dpw office-based - Negotiable | ||
| Investment Manager | ||
| London/Hybrid - Negotiable | ||
| Senior Actuarial Analyst | ||
| London/Hybrid - Negotiable | ||
| Pension Consultant - de-risking projects | ||
| UK-wide / hybrid 2 dpw office-based - Negotiable | ||
| Island Pricing | ||
| Bermuda - Negotiable | ||
| Choose Life! | ||
| Various locations - Negotiable | ||
| Capital leadership in the Capital - L... | ||
| London/hybrid 2-3dpw office-based - Negotiable | ||
| Senior Capital Actuary - London Market | ||
| London/hybrid 2-3dpw office-based - Negotiable | ||
| DC Pensions Advisory Consultant | ||
| London or Manchester / Hybrid working - Negotiable | ||
| Senior Pensions Data Technician - Ful... | ||
| Fully remote - Negotiable | ||
| Chief Actuary | ||
| London - Negotiable | ||
| Senior GI Pricing Analyst | ||
| London/flex - 2dpw in the office - Negotiable | ||
| Retail pricing role model | ||
| London/flex - 2dpw office-based - Negotiable | ||
| Tech-led actuarial pricing | ||
| London/flex - 2dpw in the office - Negotiable | ||
| GI Pricing (Assistant) Manager - Nati... | ||
| UK-wide / hybrid 2 dpw office-based - Negotiable | ||
Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.
Copyright © 2025 Actuarial Post. Created by Zero-One Design Ltd
