HUGH Reid, general manager of JN Life Insurance, has urged employers to consider automatic enrolment of employees in a pension scheme to improve the circumstances of their workers, especially women in retirement.
According to Reid, there are several factors that leave women more vulnerable than men to old-age poverty, such as living longer and being more likely to be caregivers for others at that age.
He adds that an automatic enrolment policy would ensure that many are protected from poverty when they retire.
“Automatic enrolment is when an employee who meets certain requirements is made a member of a workplace pension scheme without needing to ask to be part of it,” said Reid
“Auto enrolment ensures that savings occurs alongside the pay cheque, and significantly simplifies the process for identifying and starting a retirement savings account. At the same time, the opt-out option maintains individual choice and responsibility for the decision to participate in the plan.
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