6 ways employers can support employees’ retirement goals

Standard Life offers some practical advice on how employers can help employees bridge the gap between when they want to give up work versus when they can actually retire.

Half of UK workers expect they will need to work beyond state pension age — yet only 49% believe they could still be doing their job at 70.

That gap between expectation and reality is becoming one of the defining challenges for employers. The challenge for employers is no longer simply encouraging pension saving — it’s helping people achieve a retirement that feels both realistic and attainable.

Over the past 30 years, retirement has shifted significantly. Standard Life research shows people are now retiring five years later than they did in 1994. Yet expectations haven’t kept pace. While employees would ideally like to retire at around age 62, most expect this won’t be possible until closer to 67.

This “retirement expectation gap” is even more pronounced for those under financial pressure. Employees who are struggling face a gap of 7.7 years, compared to 2.5 years for those who feel financially comfortable.

At the same time, confidence declines sharply with age. While 80% of individuals believe they could work to age 60, this drops to just 49% at age 70 — despite many expecting they will need to continue working. Against this backdrop, employers have an increasingly important role to play in helping employees prepare for retirement — not just financially, but in terms of confidence and clarity.

Here are six practical ways to support your workforce:

Make the most of employer matching: Employer contributions are one of the most valuable — and often underutilised — benefits available to employees. If your scheme includes a matching structure, make sure this is clearly communicated. Highlighting where employees may be missing out can encourage higher contributions and help them make the most of what is, in effect, additional employer-funded savings.
Explain the benefits of bonus sacrifice: Where bonus sacrifice is available, clear and simple communication is key. Many employees are unaware that directing some or all of their bonus into their pension can reduce both tax and national insurance, while boosting their long-term savings. Providing straightforward explanations and examples can help improve take-up. Read more about making the most of salary sacrifice before April 2029.
Prioritise financial education: Financial confidence plays a crucial role in retirement readiness and improves financial wellbeing. Employees who feel more in control of their finances are more likely to engage with longer-term planning. Signposting to trusted, impartial guidance — such as MoneyHelper — can help employees build knowledge on everything from budgeting to retirement planning. Workplace solutions can also support this. For example if you’re with Standard Life for your workplace pension scheme, employees can get access to bitesize content, tools, and videos through its Money Mindset platform. Covering topics such as managing everyday money and planning for retirement, it allows employees to improve their financial knowledge whenever and wherever it suits them.
Help employees find lost pensions: With more varied career paths, many employees now have multiple pension pots from previous roles. Helping them track these down can give a clearer picture of their overall retirement savings and support more informed decision-making. Employers can signpost to the government’s Pension Tracing Service. Or alternatively Standard Life workplace pension scheme members can also use its Pension Finder tool.
Provide tools that bring retirement to life: Providing access to tools that show what retirement income could look like can help make saving more tangible. For example, Standard Life’s Retirement Income Tool, is available for all our workplace pension scheme members. It helps employees understand what their current savings may deliver, and whether they may need to take action. This kind of modelling can be a powerful motivator, helping individuals connect today’s decisions with future outcomes.
Use data to target support effectively: Not all employees face the same level of retirement risk. Identifying those most likely to fall into lower Retirement Living Standards bands, particularly “minimum” or “below minimum” can help employers target support where it is needed most. Using tools like Standard Life’s Client Analytics platform that incorporate Pensions UK’s Retirement Living Standards can provide valuable insights into where employees are tracking. This enables more focused interventions, such as tailored communications or campaigns aimed at improving outcomes for those most at risk.

Supporting better long-term outcomes

For many employees, the gap between when they want to retire and when they expect to, is widening. Closing that gap requires more than simply offering a pension — it demands ongoing engagement, education and targeted support.

Employers who take a more proactive approach can make a meaningful difference. By helping employees understand their options, improve their financial confidence and take practical steps today, they can support better retirement outcomes.