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If you were to ask all of your employees (or even yourselves) how much money they need to save in order for them to have a comfortable retirement, how many do you think would know the answer?

Ostriches and Sleepwalkers

If you were to ask all of your employees (or even yourselves) how much money they need to save in order for them to have a comfortable retirement, how many do you think would know the answer?


I can imagine the answer to the above question would be very few.  There may be a small number of workers who are very clued up on the subject and have thought about and started preparing for retirement. Then you will have the rest, those that overlook retirement as it is “too far ahead” (ostrich) or others that wait until they are only a couple of years before retirement (sleepwalkers),  who do not find out what their retirement income is going to be, until it is nearly too late to do anything about it.  

According to a recent survey - 64% of employees over age 45 aren’t sure how much they need to be saving to ensure a comfortable retirement. On top of this, over 30% of these people didn’t know how much they had already saved in to a pension.

We spend so much time planning for events which last for a short period of time, such as holidays, weddings or birthdays, so why don’t we take the time to plan for something which could last 30/40 years, like our retirement!

I’m sure you will agree that this is not how it should be, and as an employer, there are ways in which you can help. Firstly, ask yourself the above questions - do you know the answers?
Can you guide & remind your employees to ensure they are making sufficient preparations, sooner rather than late? Your employees can contact any previous employers to determine where they may have pensions held (if lost or forgotten, the Government runs a free phoneline to help trace these).
Many modern pension schemes allow access to all members and encourage them to create online accounts, allowing visibility on their pension savings as well as useful tools and calculators. 

If you really want to tackle this issue head on, you can provide your employees with some time with an Independent Financial Adviser.  Whether it be a group presentation or a one to one meeting, nothing will prepare them better for their retirement than speaking to an expert.

It is worth noting that as an Employer, the costs for a generic meeting for staff with an adviser, is a tax-free benefit for employees. The government will not treat the provision of advice for employees as a benefit in kind, unless the cost per employee is more than £500 per annum.

To discuss any of the above, please give our team a call on 01473 408 408.

 

 

 

*Sources available upon request.