Setting up a pension scheme isn’t necessarily a priority for a 20-something year old finding their feet in the world of employment after graduating university. But starting early could make all the difference.
As a young, tech savvy team, the thought of riding public transport on a freedom pass – or collecting our pension – is a little distant. We all know of horror stories about people not saving into retirement schemes correctly and it’s not rare to work for a company that is reluctant to pay their contribution. But at Stakester, we refuse to resemble the norm, instead we empower our workforce with a pension that we can all rely on in the later years.
Educating Gen Z’s
In a recent news article on ITV Tonight, two Stakester employees; Josie and Rory, were featured in a study on young person pension schemes.
The Financial Conduct Authority and The Pensions Regulator’s recent publication calling for input on supporting young consumers to make “informed decisions that lead to better saving outcomes” has been refreshing. Whilst we may not like the thought of relying on a Benidorm-style scooter one day, it is important that we learn more about saving for the future and planning for retirement as early in our careers as possible.
Many young people will receive guidance from their friends and family, which will allow them to have a decent overview of how pension schemes work and their benefits in the later years of life. However, others that aren’t fortunate enough to receive such insight may fall victim to potentially catastrophic consequences in 30 to 40 years’ time.
ITV’s feature on young people’s pensions coincides with mounting pressure on the government, as well as future governments, to educate and persuade young people to save money into pension schemes – or at the very least receive greater understanding about money management and retirement planning. The time for such a campaign and the necessary financial incentives is already here, and it is refreshing to see the conversation around young people’s pensions now discussed in mainstream media.
ITV’s study on Stakester’s young employees
Stakester’s very own Josie and Rory had varying degrees of understanding around pensions prior to taking part in ITV’s news article. To further their knowledge on how pensions work, the pair were tasked with calculating how much money they’ll be receiving as a pension. Then, they had to live off the total calculated amount for a week, all whilst being monitored throughout to assess the challenges they would face when this becomes their reality.
Rory’s pension was calculated to be £461, while Josie’s was £379. Both of them did manage to beat the challenge – with Rory having £11 leftover and Josie £38. But, thy didn’t do so without struggle:
“I was pretty worried going into the challenge, especially given the wild recent inflation. I did manage to just about complete it under budget, however I’m aware that most weeks there would be a number of extra things I’d spend money on, which would take me over budget. It’s certainly made me start thinking more about how much I need to save for retirement, and how difficult that’s going to be in this climate” said Rory.
What have we done for our employees?
At Stakester we believe that incentivising our employees and providing a good pension is fundamental to a great work culture and healthy functioning business. By law, both employee and employer have to make a minimum contribution of 5% and 3% respectively to an employee’s pension pot. A lot of workers view this saving for the future as missing out on the present.
Stakester wanted to end the challenges that this dynamic caused, so now the company contributes both the employer (3%) and employee (5%) contribution. This means that our employees get to work hard and enjoy the rewards of their labour now, and we take care of the rest!
As the company grows, we will strive to remain at the forefront of change within tech companies, and we’re proud to be leading the way on pension positivity. We’ll continue to champion the education and understanding of saving for the future, so that our employees can focus on enjoying the ‘now’.
About the author
Stakester
Stakester connects players who want to put their hard-earned skills to the ultimate test – by playing their favourite games for money and prizes.