Why Employees Need More Support from Their Employers for Corporate Pension Plans
Corporate pension plans are becoming increasingly important—and for good reason. For many employees, the prospect of relying solely on state pensions is insufficient to maintain their standard of living in retirement. Yet, despite the urgency of the issue, information, support, and clarity are often lacking. Employers have an opportunity to take proactive steps that not only address social responsibility but also enhance employee trust and satisfaction in the long term.
The Challenge: uncertainties and information gaps
For most people, retirement planning is riddled with questions and uncertainties:
- How much will my pension actually be?
- What options exist for private or corporate pension planning?
- How much should I save monthly to ensure adequate coverage?
The central problem is a lack of necessary information for employees. According to a recent study by Civey, over 59% of employees want more support from their employers for retirement planning. At the same time, many People & Culture teams feel overwhelmed by the topic. While it's widely understood that the state pension is insufficient, the concrete steps needed for additional savings remain unclear.
The Reality: alarming pension gaps
The numbers underline the urgency of retirement planning:
- To achieve a gross monthly pension of €2,000 in retirement, a person would need to earn €6,150 gross monthly income over 40 years.
- In reality, pensioners in Germany receive an average gross monthly pension of just €1,170.
Alarmingly, 8 out of 10 men approaching retirement report expecting a higher pension, according to a recent study. Women face even greater challenges due to lower incomes and career interruptions.
Why employers are in demand
State pensions alone cannot secure the standard of living for many in retirement. Employees are aware of this and worry about their future. But managing these concerns alone is challenging. Here’s how employers can make a difference:
- Taking Responsibility: Employees contribute significantly to their companies' success over the years. Employers can honor this loyalty by offering corporate pension plans and taking social responsibility.
- Providing Clear Information: In an era where retirement planning information is often complex and inaccessible, employers can act as a bridge by offering transparent communication and user-friendly digital tools, such as the DEGURA app.
- Promoting Financial Security: A well-organized corporate pension plan provides employees with peace of mind, enabling them to focus on their work without constant worry about the future.
The Social Aspect: building a secure future together
Retirement planning is not just an individual challenge but also a societal responsibility. Corporate pension plans were introduced by the state and unions for a reason—to complement state pensions and help close financial gaps. However, this requires employer support.
Studies show that employees who feel financially secure are more satisfied and loyal to their companies. Feeling valued forms the foundation for sustainable collaboration.
Conclusion: working together for financial security
Corporate pension plans are more than just a financial topic—they are an investment in employees' futures and the strength of a company. Employers who support their employees in this area not only enhance financial security but also build social trust within their teams.
In a time when the topic of retirement is becoming increasingly important, companies can make a real difference. By offering clear information, transparent processes, and digital solutions like the DEGURA app, they can demonstrate genuine care for their employees' futures.
The message is clear: Employees need support—and they deserve it.
Inspiration from Practice
Companies that take social responsibility seriously demonstrate how targeted support for corporate pension plans can boost employee trust and satisfaction. The experiences of such trailblazers provide valuable insights into how employers can make a difference for their employees and corporate culture alike.
