The recent UK Labour Market statistics1 showed the number of people in employment continues to rise.This is also the case for people over traditional retirement ages with the figures showing there were 1.2m people over the age of 65 in employment between April and June 2018. This is up from 1.1m in the same period last year2.
On the face of it these figures may seem to be indicative of the whole “work until you drop” idea whereby people have to keep working because they haven’t saved enough for retirement. While this may be the case in some instances it’s also worth noting that many people choose to work longer out of choice.
This is an important shift that employers should take advantage of, and have plans in place for. Some people simply don’t feel ready to retire at the age of 65 and if they’re enthusiastic and continuing to do a good job then why should they? Of course, some people may no longer want to, or be able to do their job by the time they reach retirement age. In either case, you might find it helpful to speak to a financial adviser about plans for your employees’ retirement ages.
If you don’t already have a financial adviser, you can find one in your area by visiting unbiased.co.uk. Advisers may charge for their services - though they should agree any fees with you upfront.
It’s important that employers make sure their older workers are aware that if it suits them and you then they have the option to work for longer. Such conversations could happen a few years away from normal retirement age while the employee is still assessing their options.
Another important point could be around the time retirement engagement packs are being sent out – these packs give the employee information of how much they have saved into their pension and gives them information about what their income options might be.
While these packs are often issued a few months away from retirement, at Royal London we recently decided to start sending retirement engagement packs five years from retirement. Having these discussions at this point would also have the benefit of alerting those people who may not want to continue working past their normal retirement date to the fact they may have gaps in their retirement saving that need to be filled.
Find out more on our new suite of retirement communications and have a look at the samples.
Older workers can have much to offer in terms of their skills and experience and it is important that employers recognise this. By doing so they have a huge talent pool at their disposal to help them continue to grow their businesses.
ONS Wealth and Assets survey: August 2018
Department for work and pensions, Automatic Enrolment Review 2017: Maintaining the momentum: December 2018