Even as companies encourage 50-somethings to work for them, helping them prepare for retirement eventually should still remain a top priority.
The latest research showed that while 55% of employers are actively hiring staff in this age bracket, only one in four offer any form of planning for life after work.
The survey from Hays[i] suggests one in three workers aim to retire in the next five years but only one in ten have actually discussed this with their employer. Punter Southall Aspire CEO Steve Butler said it was a balancing act facing HR teams. Steve commented:
Companies recruiting over-50s will benefit from the knowledge and experience they bring but they also need to help to prepare their colleagues for when they finally want to bring their careers to a close. Employers have a unique opportunity to engage their people, to encourage them to save, and to support those retiring with financial education, such as digital tools to help them prepare with greater confidence.
Steve Butler, Punter Southall Aspire
Punter Southall’s latest survey* amongst HR professionals found 51% of employers fail to offer any additional support to employees approaching retirement beyond contributing to their pension. Steve added that the government’s own figures[ii], suggested 12.5m British workers were not saving enough for later life.
Preparing older workers for future retirement benefits both the employees and the company. Providing older workers with valuable support can contribute to the overall well-being of their workforce, ensuring a smooth transition into retirement.
Companies that offer support for retirement planning, such as financial education and digital tools, demonstrate a commitment to their employees’ long-term welfare. Moreover, in a landscape where many workers are not saving enough for later life, this proactive approach can help bridge the retirement savings gap, benefiting both employees and the broader society.
Punter Southall Aspire offers organisations ‘Pension Potential’ to add to their employee benefits. It’s free to companies and free to use, helping staff to quantify their retirement, consider their options and compare every annuity on offer. For more information, click here.