With the cost-of-living crisis affecting both employers and employees, financial wellbeing has become a top priority.
Financial wellbeing has increasingly become a focal point for both employers and employees, particularly in the wake of the COVID-19 pandemic and the ongoing cost-of-living crisis. Previously, financial health may have been a secondary concern for many organisations, but the unprecedented challenges brought about by the pandemic and economic instability have elevated its importance.
According to the PwC Financial Wellness survey, 57% of respondents cited finances as the primary cause of stress in their lives. This heightened awareness of financial stressors underscores the need for comprehensive solutions to address the financial wellbeing of individuals and the workforce as a whole.
The Impact of the Cost-of-Living Crisis on Pensions
As the cost of living continues to soar, financial security has become increasingly crucial. However, amidst job changes, relocations, and other life events, millions of pensions have become lost or inactive, leaving individuals unsure about their retirement savings. The value of lost pension pots in the UK has surged by 37% to £26.6 billion, with approximately 2.8 million pensions considered lost, each worth around £9,500 on average.
Aviva’s new solution
Aviva recognises this urgency and has introduced a ‘Find and Combine’ pension tracing, checking, and consolidation service, aimed at helping individuals locate lost pensions and take control of their financial future.
Aviva’s pension tracing service goes beyond merely locating lost pensions. It also checks for valuable benefits and fees, ensuring customers are aware of all their options. Since its pilot in 2022, the service has successfully reconnected customers with £87 million of lost pensions, with the largest single pension found exceeding £350,000. 2% of the checked pensions had valuable or safeguarded benefits, emphasising the importance of thorough checking before consolidation.
Empowering customers for financial confidence
Joanne Phillips, Managing Director of Direct Wealth at Aviva, emphasises the simplicity and efficiency of the ‘Find and Combine’ service. With just a few personal details and ten minutes of their time, customers can initiate the pension tracing process, alleviating concerns about lost savings. Aviva’s vision is to inspire confidence in consumers’ financial decisions, ultimately empowering them to take control of their wealth.
Overcoming consolidation challenges
Despite the desire to consolidate pensions, many individuals hesitate due to fears of making mistakes or losing money. Aviva’s research found that only 30% proceed with consolidation, highlighting the need for accessible solutions. ‘Find and Combine’ simplifies the consolidation process by presenting all pension information in one easy-to-read dashboard, empowering customers to make informed decisions about their retirement savings.
Looking towards a secure financial future
In the face of economic uncertainty, Aviva’s pension tracing and consolidation service offer a beacon of hope for individuals seeking financial stability. By investing time today to trace lost pensions, individuals can take significant steps towards securing their financial future, ensuring every penny counts towards a comfortable retirement.
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