Over half (51%) of employers fail to offer any additional support to employees approaching retirement beyond contributing to their pension, according to a new survey amongst over 1,176 HR professionals from Punter Southall.*
Researchers found that while a third of employers said they are unhappy about the level of retirement support they currently provide to employees, the majority (96%) would consider offering help to improve employees’ retirement income if it were free of charge.
Punter Southall Aspire CEO Steve Butler said: “Our survey found pensions are considered the number one employee benefit. However, many are just not saving enough, and their pension pot may not be sufficient for the life they anticipate.
“For those approaching retirement there is a huge advice gap too, with many over 50s not seeking help despite money worries.
“Employers have an opportunity to address this. They are in a position to encourage people to save more and support those heading towards retirement with financial education or digital tools that can help people plan for their future with greater confidence.”
This view chimes with the government’s Money and Pension Service,[i] which has produced a 10-year strategy to improve the nation’s financial wellbeing. One of the five ways they want to drive change is through people engaging with their future and being empowered to make informed decisions for, and in, later life.
Steve added: “We urge employers to get behind this government strategy. While budget can be a barrier in the current economic climate, there are free tools and support services available, which can be a cost-effective way for employers to start offering support and advice, helping their workforce better plan for their future.”
The Institute for Fiscal Studies (IFS) also found 90% of people are not saving enough for their retirement[ii] – less than the 15% of earnings suggested by a previous Pensions Commissions report[iii].
[i] https://moneyandpensionsservice.org.uk/wp-content/uploads/2020/01/UK-Strategy-for-Financial-Wellbeing-2020-2030-Money-and-Pensions-Service.pdf
[ii] https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/retirement-expert-pension-advice-saving-enough-2286115
[iii] https://ifs.org.uk/news/major-new-pensions-review-warns-substantial-risks-finances-future-generations-pensioners
