Make sure you plan for retirement properly and well in advance – otherwise you risk losing out
Only 36 per cent of employers provided pre-retirement planning help for employees, despite the fact that 70 per cent of recipients said it was useful, insurance company Aviva’s Real Retirement report found. The most popular forms of support were workshops and literature on retirement finances, followed by the provision of a dedicated member of staff with whom to discuss the issues, and a list of recommended financial advisers.
Clive Bolton, ‘at retirement’ director at Aviva, says: “In order to motivate and retain staff many employers invest in pensions and other benefits, but then left staff drift away at retirement without providing any advice or support.”
If you are coming up to retirement, check your contract or ask the human resources department if you are entitled to any help. If not, it could be worth making the case for receiving some, pointing out that failure to provide it could mean the company loses out.
Labour market figures show that almost a third of people who qualify for the state pension are still looking for work, even if only on a part-time basis. As a result companies that offer employees the option of part-time or flexible work could avoid them walking away and taking valuable skills and experience with them. What’s more, says Bolton, “Employers who help long-term employees feel secure about later-life finances are likely to benefit from increased staff engagement and productivity.”
The average worker will have earned £1m by the age of 56 according to insurer Prudential.
Most men who earn the average income for their age bracket from age 18 to 65 will have earned the sum before tax by the time they are 51, but women have to wait 22