How to build a pensions strategy for employees nearing retirement

Helping employees prepare with the right support builds employee confidence about their retirement planning and decision making, improves wellbeing, protects performance and supports long-term workforce planning.

Retirement should be something to look forward to. But for many employees, it’s a source of uncertainty and anxiety.

Hymans’ Midlifer campaign, which explored the financial concerns and retirement readiness of employees aged 40 to 60, revealed that a significant number of people in this group feel unsure about whether they’ll be able to retire comfortably. Some aren’t clear on what retirement will cost, others don’t know how to make the most of their pension savings. Many simply don’t know where to start.

This uncertainty isn’t just a personal concern. It affects how people show up at work. Financial stress can lead to lower engagement, reduced productivity and delayed retirement decisions. It’s often driven by a lack of clarity, not a lack of effort. Most people want to make sensible choices; they just need help knowing where to begin.

Hymans’ recent research, based on a survey of over 2,000 UK employees, highlights the scale and impact of financial stress for those approaching retirement:

A third said financial stress has affected their mental health
Among those affected, 27% reported losing sleep
20% said it affects their performance at work, and
Half plan to rely on the state pension for retirement, raising concerns about long-term financial security

Here are three top tips for creating effectives support strategy:

1 Retirement planning works best when it starts early

Creating space for longer-term thinking helps ease the burden when employees get closer to retirement. It gives them time to understand their options, make informed decisions and feel more in control.

Waiting until the final few years can lead to rushed choices, missed opportunities and unnecessary stress. Most importantly, it can mean it’s too late to make the changes to meet retirement needs.

2 Provide targeted support

Targeted support provided employees with better information for them at the right time. This can include tailored workshops to help people picture their retirement lifestyle, understand the costs involved and set practical goals.

Or it could be midlife programmes focused on earlier action, helping people take stock, understand their options and build confidence well before retirement.

3 Consider those who need more personalised help

Some individuals may want or need more personalised help and the space to ask questions and get guidance on pension planning and financial decision-making.

Support here could include one to one guidance sessions to tackle a particular topic or longer-term relationships with financial coaches, giving employees ongoing guidance to help them understand their options and build confidence over time.

Some individuals may need regulated advice but not know who to ask. Employer can play a role in helping staff connect with qualified financial advisers to help them make informed decisions about their pensions and wider finances.

Ultimately, key to any successful strategy is to make the journey to retirement more comfortable and less anxiety driven for staff. Retirement is a major life transition. With the right support, it can be a positive one.