Plum members take the Escalator to increase their savings

28 November 2007

The continued success of Plum Financial Services Limited's (Plum) award winning super savings Escalator Program demonstrates how super providers can actively support their members in achieving their retirement goals, according to Plum's Managing Director Mike Fitzsimons.

Today, Mr Fitzsimons announced the latest results from the first client, Inghams, to implement a version of the program on an 'opt in' basis, exceeding expectations with a much higher than expected take-up rate by employees.

'We had faith in this program from the start, but the continued positive feedback from both clients and their employees, as well as the high take-up rates, has convinced us Australians are looking for more support towards achieving their retirement goals,' Mike Fitzsimons said.

'Given the fantastic results we are seeing from this program, we think it is time for other super providers to seriously consider offering their clients and members a similar option.'

Mr Fitzsimons said the challenge for super providers in Australia is to help members save more – particularly knowing that most Australians are falling short of their retirement income goals and many are not doing anything about it.

'The Escalator Program makes it even easier and simpler for our members to save towards their retirement, and is a great example of how by trying something new and different, we are able to get great results for our members. Even better, this program can also trigger the Government's co-contributions scheme for eligible members. '

The latest results One of Plum's 82 clients, Inghams, is the first client to rollout an 'opt in' version of the Escalator Program to its employees.

The results speak for themselves, with 17% of Inghams employees, who were not previously making any additional contributions, adopting the program and now making voluntary contributions to their superannuation (see attachment over for how the Escalator Program works).

In addition, 47% of Inghams employees who were already making voluntary contributions increased the amount (by varying degrees) they were putting in each week and over 60% are now contributing more to their super.

The program was offered on an 'opt in' basis to existing employees and an 'opt out' basis to new employees.

Read the full version of this story - Plum members take the Escalator (PDF 41kB).