Financial Education Project

[vc_section css=”.vc_custom_1593509130158{padding-top: -20px !important;background-color: #ffffff !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}” el_class=”mask”][vc_row css=”.vc_custom_1593517557896{padding-top: 20px !important;padding-right: 100px !important;padding-left: 100px !important;}”][vc_column width=”1/6″][/vc_column][vc_column width=”2/3″][vc_empty_space height=”50px”][vc_custom_heading text=”Financial Education Project” font_container=”tag:h1|font_size:40|text_align:center|color:%23232323|line_height:0.9″ use_theme_fonts=”yes” css_animation=”none” el_class=”custom-hd delay-2″][vc_empty_space height=”20px”][vc_separator color=”blue” border_width=”5″ el_width=”10″][vc_empty_space height=”20px”][vc_column_text]

A small DB scheme with around 140 members split roughly 50/50 between deferred pensioners & pensioners in payment. Assets of £15m, liabilities of £17m.

[/vc_column_text][vc_empty_space height=”25px”][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row][/vc_section][vc_section css=”.vc_custom_1593704492124{background: #7f8c8d url( !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}” el_class=”mask”][vc_row][vc_column][vc_empty_space height=”300px”][/vc_column][/vc_row][/vc_section][vc_section css_animation=”none” css=”.vc_custom_1593517774663{padding-top: 50px !important;padding-bottom: 60px !important;}” el_id=”overview”][vc_row gap=”35″ content_placement=”middle”][vc_column css_animation=”none” width=”1/6″ el_class=”delay-1″][/vc_column][vc_column width=”2/3″][vc_custom_heading text=”The challenge” font_container=”tag:h2|font_size:30|text_align:left” use_theme_fonts=”yes”][vc_empty_space height=”20px”][vc_column_text]Employer keen to raise understanding of retirement savings within its workforce. Members of the DB scheme had not received a statement of benefits since the Scheme closed 15 years earlier. Employer wanted to identify deferred members who may be interested in early retirement / transfer options.

The Trustees wanted to engage more with the members of the Scheme, and in doing so capture up-to- date member personal details such as home address, marital status, email, etc.[/vc_column_text][vc_empty_space height=”50px”][vc_custom_heading text=”The solution” font_container=”tag:h2|font_size:30|text_align:left” use_theme_fonts=”yes”][vc_empty_space height=”20px”][vc_column_text]Rather than a one-off exercise, the employer was keen to deliver regular financial education exercises, to be consistent with the company’s paternalistic approach.

Stage 1

  • Benefit statements (with normal retirement projection / transfer value) issued to 20 deferred members over age 55.
  • Letter highlighted freedom and choice legislation and offered an initial consultation with local financial adviser, at no cost / obligation.
  • Form included (reply paid envelope) asking members for up to date personal details.
  • Great engagement (80%) achieved with replies received from 16 of the 20 members.
  • 4 members transferred out, transfer values totalling £1.4m, reducing scheme funding deficit by approximately £0.3m.

Stage 2

  • Over 20 deferred members (mostly over age 50) invited to attend 1 hour presentation to meet the Trustees and hear about the workings of the Scheme.
  • Plain English presentations covering basics of state, DB and DC pension schemes, funding update, explanation of benefits available at normal and early retirement and on transfer. Strong message that transfer out is usually only suitable for a few members.
  • Details of DB Scheme presented by Scheme Actuary, company’s DC pension plan presented by financial adviser.
  • 12 deferred members attended followed by 20 employees (with DC only benefits) attending a follow up presentation on the Company’s DC pension plan.
  • 2 members transferred out, transfer values totalling £0.9m, reducing scheme funding deficit by approximately £0.2m.

[/vc_column_text][vc_empty_space height=”50px”][vc_custom_heading text=”Outcomes” font_container=”tag:h2|font_size:30|text_align:left” use_theme_fonts=”yes”][vc_empty_space height=”20px”][vc_column_text]

  • Far greater understanding of the DB and DC pension schemes by the members.
  • Face-to-face contact between Trustees, Scheme Administrator and members, with up to date member personal details obtained.
  • Members offered high quality independent financial advice, at no cost.
  • Employer sees funding improvement from a few member transfers.

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Quote from member: “I thought the presentations went very well this morning, were very informative and certainly make life easier in terms of deciding upon retirement options.”

Quote from MD: “My staff and ex-employees were very appreciative of two excellent presentations. We will repeat this exercise next year.”

[/vc_column_text][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row][/vc_section][vc_section css=”.vc_custom_1595435993254{padding-top: 50px !important;padding-bottom: 15px !important;background-color: #181223 !important;}”][vc_row gap=”35″ equal_height=”yes” css=”.vc_custom_1595435049489{margin-right: 0px !important;margin-left: 0px !important;}”][vc_column width=”1/2″][vc_empty_space height=”35px”][vc_custom_heading text=”Get in touch” font_container=”tag:h2|text_align:left|color:%23ffffff” use_theme_fonts=”yes”][vc_empty_space height=”10px”][vc_column_text]Broadstone is a team of experts who are passionate about the ever-changing world of pensions and benefits. As such, they have hundreds and thousands of ideas, views and events to share with you to meet your business needs. Our business believes and promotes a people first culture, both internally and to you, our clients.

We believe in our core values and the culture they deliver. We know that when we all work as a team and combine our vast reservoir of expertise and knowledge, we will deliver results to our clients, maintaining the personal touch that can be so often missing in today’s business world.

100 Wood Street, London, England, EC2V 7AN
P: 020 3869 6900  |[/vc_column_text][vc_empty_space height=”40px”][/vc_column][vc_column width=”1/2″ css=”.vc_custom_1595436093105{padding-top: 20px !important;padding-right: 60px !important;padding-bottom: 20px !important;padding-left: 60px !important;background-color: #eef1f4 !important;background-position: center !important;background-repeat: no-repeat !important;background-size: contain !important;border-radius: 3px !important;}” el_class=”bg-bottom”][vc_row_inner][vc_column_inner css=”.vc_custom_1595435394186{padding-right: 10px !important;padding-left: 10px !important;}”][vc_column_text][hubspot type=form portal=6562331 id=9355e29f-b4c9-4fad-8b58-b2614e3cd5c5][/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][/vc_section]