7 ways to support financial resilience of your ageing workforce
Although there is a perception that more mature members of staff have their finances sorted, many don’t.
Here are seven practical ways that you can support them in the workplace.
Financial stress impacts productivity, retention and engagement
One of the top concerns for mid- to late-career workers is personal finances; 20% of UK employees aged 40-60 said worrying about their future retirement finances is affecting their ability to work.
Moreover, 70% of employees aged between 45-65 do not have financial wellness support available in their workplace.
One of the challenges faced by this age group is juggling financial responsibilities for both children and elderly parents, as well as affording their own retirement.
In addition, they face a larger social stigma around poor financial wellbeing as there is an expectation that they should have it all figured out.
The good news is that the taboo around asking for help with finances may be lifting with most workers now seeking financial guidance from their employers.
Practical tips to support financial resilience:
1. An age-friendly workplace
Sign up to The Age-friendly Employer Pledge and commit to not only hiring more mature adults, but helping them alleviate financial burdens through financial education and benefits. This will help keep them in work longer, take partial retirement and even return to mentor others so you can still benefit from their expertise.
2. An inclusive benefits package
Review your benefits to ensure they are inclusive of your ageing workforce. Remove age limits on insured benefits and promote benefits that cater to the needs of older employees. These include retirement planning resources, health and wellness programmes and apps, and caregiver support which helps employees to understand, find and fund care for their elderly loved ones.
3. Prioritise healthcare
With sickness, injury or disability being the main reason why adults aged between 50 and 64 might not be in work, prioritise healthcare support. Offer age-specific health screenings, mental health resources, and menopause support through workplace hubs and digital tools such as the Menopause in the Workplace Resources Hub. These services help experienced staff maintain their wellbeing and continue contributing effectively to the workplace.
4. Flexible working
Many senior workers can’t afford to retire but have health concerns or personal commitments that make it difficult to work a 9-5 job. By offering flexible work arrangements, you can help them to continue earning, and promote work-life balance, leading to increased job satisfaction and productivity. Other options include flex time, compressed work schedules, part-time or job-sharing roles.
5. Support with retirement planning
Ask employees about their retirement goals, whether it's covering household bills or traveling the world. Guide those who are uncertain to the Midlife MOT, a government service for long-term planning. Consider offering phased retirement options, allowing seasoned staff to transition gradually while you manage succession planning.
6. Pensions support
Provide clear information and guidance to employees about workplace pension benefits and the state pension. While the level of pension contributions you put into your workplace scheme is up to you, a 2022 survey found that matching employees' pension contributions was placed third on the most highly valued employee benefits.
7. Financial planning
More than 75% of employees aged between 45 and 65 say that being in control of their finances creates a reduction in stress. Provide your employees with the financial resources to understand the implications of retirement including offering retirement and savings programmes that allow them to draw down income while still working.
The number of people who continue working over 65 in the UK increased to record levels in 2022. A tight labour market and a decrease in the birth rate has meant that workers in their 50s and 60s are key to filling much needed skills gaps and vacancies.
By bolstering their financial resilience, employers can optimise on the wealth of experience these employees have honed over a lifetime, free of money worries that can hamper their engagement and productivity.
In partnership with Avantus
Flexible Benefits & Technology specialist providing online, highly configurable platforms to Customers and Intermediaries worldwide.