64% of businesses fail to provide retirement support
July 12, 2012 Leave a comment
Most older employees are on their own when it comes to making decisions about retirement and working options in later life. According to a new report only 36% of employers provide their workers with guidance in the run-up to retirement.
In addition to this, the latest Real Retirement Report from Aviva found that today’s over-55s have typically been with their last employer for 16 years (around a third of their working life), and 56% of employers have spent money on providing work place benefits such as pensions, private medical insurance, and annual bonus. However, the investment stops there. The majority of employers let their older employees drift away at retirement without providing any advice or support.
As the Aviva press release points out, this lack of guidance not only highlights a lack of commitment to employees but is also likely to lead to a loss of vital skills from older employees. Almost a third (32%) of those who qualify for the state pension are still looking to work – at least on a part-time basis – so by engaging with an employee’s retirement planning a business may be able to keep their valuable employees for longer.
The report also revealed that the vast majority of employees aged over 55 who have received support from their employer welcomed it, with 70% saying they found it useful. The most useful types of retirement support according to employees are workshops on retirement finances (35%) and written literature on retirement finances (35%).
Now the legislation relating to retirement has changed, part of the skill of managing older workers, ensuring their engagement and commitment, and supporting them into retirement comes down to open communication with them about their aspirations and plans. Formal retirement planning courses provide an ideal forum for both older people and their employers to focus on the options appropriate to their own workplace.