The 60-year career: how to support employees throughout their working lives
We are in the age of the 60-year career.
Instead of the traditional model of overnight retirement, workers may choose to blend their pension with part-time earnings, return to work after a break before fully retiring or decide to completely change the direction of their long-time career.
One in three UK employees expect they will have to work to the age of 70, with many not having been given the access to tools or knowledge to help them save sufficient funds for not only their own needs, but those of their loved ones as well.
With an ageing population in the UK, around two-thirds of people will provide care to a loved one at some point in their life. Some will take time away from their career or quit completely to support the person they care for - affecting their future pension pot in the process.
Businesses need to help employees feel in control of their pensions and future wealth through effective communication, offering wider assistance on the realities of preparing for later life.
Here are 4 ways employers can encourage staff to save for their future:
1. Consider different stages of life
In the UK, there are 10.6 million working caregivers juggling unpaid caring responsibilities alongside their professional role.
The older we get, the more likely it is that we will care for a loved one - with the average person having a 50:50 chance of being a caregiver by the age of 50 - long before they reach retirement age.
Although a rewarding role, caregiving can take its toll on working caregivers.
According to NHS data, 4 in 10 working caregivers report financial difficulties, demonstrating not only the emotional, but financial strain that can be felt when caring for a loved one.
Without the support of employers, many employees have no other option than taking time away from their career or quitting altogether - which can have detrimental effects to a person’s pension.
And the reality is, caregiving disproportionately affects women, with Carers UK research finding that women aged 55-59 provide the most unpaid care to a loved one, with 20% of women aged 55-59 in England providing unpaid care.
Timewise research found that part-time work is prevalent among women, with 38% of female employees working part-time versus just 14% of men - with the most cited reason for reducing working hours being to manage caring responsibilities (32% rising to 45% among women aged 35-49).
Reducing working hours and taking breaks from employment altogether reduce an employee’s overall earning potential, as well as the potential to take full advantage of employer contributions. For women, this results in pension incomes being 40% less than men’s on average.
Employees need to be offered tools and solutions to get them the help they need on their caregiver journey to ensure they stay in the workforce to contribute to their future pension, and KareHero can give employees the support they need as an employee benefit solution.
2. Tailored communications
Personalised and tailored pension communication has far greater impact than a one-size-fits-all approach.
A segmented strategy can therefore improve the impact of a company’s pension offering, by adapting the approach to consider different needs, values, interests and workforce demographics.
3. Consider timing
Employers should keep saving for retirement in people’s minds long term.
Framing pensions as part of an organisation’s wider financial wellbeing will help minimise pressure felt by employees.
Pension savings messages should include a level of sensitivity and carefully timed communication, offering employees at different stages of life the information they need when it is most necessary for them.
4. Knowledge is power
The world of pensions is filled with jargon and complex financial topics, making it hard for employees to navigate the pension landscape.
Good communication can help employees who may not feel confident on the topic.
Incorporating greater access to additional information or education will be valuable in helping bridge the gap, while maximising the benefit employees can reap from their pension planning and saving.
An inclusive strategy should include access to education materials to build knowledge, understanding and confidence, providing a strong foundation for employees in the fundamental aspects of pensions and how to prepare for the future.
With greater, more meaningful support from employers, employees will be able to prepare for the future, for themselves and their loved ones, no matter what life throws at them.
In partnership with KareHero
The UK’s No1 adult caregiving support service' for employees. Helping families understand, find and fund elderly care.
