A combination of low unemployment, falling stock markets and a rising number of elderly have led to major changes to occupational pension schemes during the past couple of years. However these developments will pale in comparison with those envisaged by pensions expert, Geof Pearson, who will speak at this year’s CIPD annual national conference on 23 October.
Pearson believes that employees will have to take more control of their finances by combining part-time or lower grade work and retirement. He claims that pensions reform will be central to this trend and will feature a compulsory 60% contribution to occupational pension schemes and the ability to withdraw from a company pension while working. Pearson adds that pensions will become more flexible departing from the traditional one-size fits all approach to pensions.
Pearson, Pensions Manager at Sainsbury’s comments, “Many employees have to make the unnecessary choice of continuing or retiring from their full-time job on full pay. Organisations like ourselves have revamped our pension schemes to ensure that there is a third way.”
In the same session, Denise Keating, Head of People Proposition at Marks and Spencer claims that employees will gain further control of their lives through flexible working. She comments, “Very often employers cannot afford to let their employees go while employees cannot afford to take retirement. We need to treat our staff like customers and offer the same level of flexibility and choice if we are to maximise the potential of both the individual and the organisation.”
Read more about the CIPD Conference and Exhibition.