Less than 50 percent of employers provide ‘at retirement’ support; 27 percent will refer employees to government guarantee scheme, while 10 percent have recently put in place financial education for employees at retirement; 49 percent of employers see ‘At Retirement’ support as part of their employee value proposition; 43 percent state it helps with staff engagement.
Workplace support for those ‘At Retirement’ is set to rise in response to the government’s pensions reforms, according to the latest research* from Close Brothers Asset Management. Currently, less than 50 percent of employers offer specific ‘At Retirement’ support to staff. The most popular form is the provision of workplace seminars (26 percent), while 23 percent of employers provide access to information via the intranet. 18 percent provide access to an annuity service provider through the company pension provider, while a further 9 percent offer access via another provider. Currently, only 17 percent provide access to financial advice. 36 percent of employers expect the workplace provision of ‘at retirement’ support to become more widespread.
Recent reaction
The changes announced in the Budget have already caused many employers to adapt their financial education support for employees. 27 percent of employers will be referring employees to the government’s guidance scheme, while 15 percent have recently made changes to incorporate at retirement guidance into their pension communications. 11 percent have recently introduced financial education for all staff, with a further 10 percent having recently introduced this specifically for staff approaching retirement.
Employers also recognise that investing in ‘At Retirement’ education and support, delivers benefits to the business as well as employees. Nearly half (49 percent) see this support as a key part of their employee value proposition. 43 percent believe it helps staff engagement, with more than a quarter (26 percent) stating that it helps with succession planning. Analysing the response from different sectors, pharmaceutical companies currently have better ‘At Retirement’ support for their staff than the average company, with 57 percent boasting some form of support. 56 percent of manufacturing companies provide similar support, compared to 44 percent of professional services employers.
Jeanette Makings, head of financial education services at Close Brothers, said:“Many employers already see the benefit in financially educating their staff, and have provision in place. However, these increased freedoms and choices available to employees approaching retirement have focused employers on the need to review the level of support they provide. Steps such as updating communication strategies to employees is straightforward enough, but for many, the change provides an opportunity to build a more comprehensive programme of education to boost staff engagement and retention. We have already seen many businesses spurred to updating their offering, and as April approaches we expect this number is only going to increase.” * Research of over 200 UK employers
