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Should we "retire" retirement?

People are four times more likely to live beyond 90 than they were in 2014.1 And yet, many workers are not as financially prepared for a longer life as they should be.2 This means they aren’t retiring when their employer might expect and in fact, two thirds of workers don’t ever expect to retire2. So should we “retire” the idea of retirement?

Increased life expectancy, along with the mass shift by employers from Defined Benefit to Defined Contribution pensions,3 are putting workers under huge pressure to save for the future. This affects not only the mental wellbeing of your employees, but also the productivity of your workforce as a whole.2

Planning for lifestyle in retirement

36.7% of workers over 55 consider finance to be the most important consideration when thinking about retirement. This is closely followed by concerns about maintaining health and fitness (26.4%).4 However, less than 50% of employees over 55 have considered the wider aspects of their desired lifestyle in retirement.4 This poses the question: how can you know how much to save, if you don’t know what you want retirement to look like?

two thirds of employees over 55 have not had a proper discussion with their partner about retirement 

Almost 65% of workers over 55 consider something other than finance to be the most important aspect of retirement4 even though finance is often the most prominent in discussions about retirement. It is therefore important to support employees in determining how to achieve their desired lifestyle. Or otherwise, encourage those who have not yet planned for retirement, to consider what they want it to look like.

92% of people have not considered education in retirement

Supporting employees with retirement planning

LaterLife, part of Jelf, found that only 24% of workers feel they are offered the retirement support they need. A further 45% are unaware whether this support is available.4

Supporting your employees in retirement planning is important for the long-term health and productivity of your workforce.2 Retirement support should provide guidance on physical fitness and general financial security, but it should also focus on mental and social wellbeing.

Government surveys show that people aged 75 and over are the least likely to have at least one close friend. While 11% of those over 75 reported having no friends at all.1 Are there ways you could encourage employees to maintain relationships outside the workplace? Providing ways for your employees to plan and prepare for retirement will allow them the opportunity to consider all the other aspects of retirement beyond finance.

The most important thing, is that employees are given the opportunity to plan for all aspects of their retirement.

 

Sources

  1. ons.gov.uk/nationallifetablesunitedkingdom/surviving-to-older-ages
  2. brinknews.com/is-it-time-to-retire-retirement-or-just-redefine-it/
  3. pensionspolicyinstitute.org.uk/briefing-note-2-the-shift-from-defined-benefit-to-defined-contribution
  4. LaterLife 2017 Retirement Survey of 1,000 employed people over 55
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