6 ways employers can support wellbeing on the path to retirement
As employees start thinking seriously about retirement, two pressing questions often arise – “Will I have enough money to stop working?” and “What will life look like after retirement?”
For many employees, the path to retirement has become less straightforward than it once was.
With the State Pension age rising and working lives lasting longer, decisions over when and how to retire are increasingly being influenced by personal circumstances, such as health, caring responsibilities and financial pressures.
Retirement planning for employers is therefore part of a much wider wellbeing conversation. Employees still need to understand their pension and financial options, but very often, they’ll also need support to look beyond the numbers and consider what a healthy and financially secure retirement might look like.
Here are six ways employers can help:
1. Talk about retirement sooner
Many employees don’t start thinking seriously about retirement until they’re within just a few years of stopping work.
By then the options may begin to feel limited, particularly if they’ve not reviewed their pension savings, thought about what income they may need or considered what they want life after work to look like.
Employers can help by making it easier for employees to start thinking about retirement earlier – by giving them useful information at an early stage, encouraging pension and retirement discussions among younger employees, and signposting to support. They can also help by making it easier for employees by offering midlife financial wellbeing sessions, providing access to financial education, or pointing employees towards useful tools such as pension forecasts, guidance on retirement living standards and resources from their pension provider.
Ultimately, employees need to understand their options as early as possible.
2. Support employees’ financial wellbeing
Money worries can affect how employees feel day to day especially as they edge ever closer to retirement.
Many pay into a workplace pension without knowing if they’re saving enough, what income they can expect or how the decisions they make about their contributions, working hours, or retirement age could impact their options.
Internal communications can help demonstrate the benefits of employee pension contributions, educating employees on how even a small increased contribution can grow their pension pot over time.
Financial awareness initiatives, as a result, can have an important role to play in supporting their wellbeing, helping employees feel more informed and in better control of their future.
3. Help people picture life after work
Employees should also be thinking about what their day-to-day life will look like in retirement.
It can be helpful to encourage employees to picture their everyday lives post-retirement, from how they’ll maintain friendships and regular social contact to whether work, volunteering, supporting family, or developing new skills could remain a part of their routine.
These conversations can be introduced through sessions designed to help them understand their money and retirement options, or through wider wellbeing communications such as pre-retirement support.
4. Recognise the emotional impact
Employers shouldn’t assume everyone approaching retirement feels the same. Some may be ready to stop work, while others may feel apprehensive about how they’ll adjust.
It can take time to adjust when familiar routines, regular contact with colleagues and the sense of purpose and usefulness that work brings starts to change.
Sensitive employers that recognise this can take steps to ensure employees know where to find support, should they need it. This may take the shape of an employee assistance programme, for example, financial wellbeing support, or resources that help people talk through the practical and emotional side of retirement.
5. Make health part of the plan
Health can have a big influence on the choices employees make as they approach retirement.
Some may want to keep working but find this difficult because of their health or because of caring responsibilities, or simply because they feel exhausted after many years in work.
Offering appropriate support can ensure employees can take retirement at a time that works for them both financially and emotionally, instead of feeling pressured to retire prematurely due to workplace pressures.
This can be through flexible working, adjustment to working hours, and offering preventative and early intervention healthcare services such as physiotherapy and health monitoring.
6. Make support easy to understand
Support for employees approaching retirement doesn’t have to be complicated to be useful. Employees just need to be able to access it, understand it and know what to do next.
This means using plain language, avoiding pensions jargon, and repeating key messages throughout the year. It also means making sure support feels relevant to different employee groups, from part-time workers and lower earners to carers and employees who have taken career breaks.
Supplied by REBA Associate Member, Everywhen
With 23 years’ experience, we are one of the UK’s largest independent employee benefits consultancies.
