Does retirement really mean no more work?
The most common question we come across from employees when it comes to their pension is, what age will I be able to retire? Which makes sense, it’s the whole reason we put money away each month!
Well, according to research completed by the Post Office, 1 in 5 people are forced back into work following their retirement! This is a scenario, I’m sure, that most of us would ideally like to avoid.
This is most likely down to a lack of sufficient planning. For retiring members, it can be complicated trying to figure out not only a life without work but exactly how much they are going to need to get by!
We found from our research that 83% of members are in the dark when it comes to when they will be able to afford to retire, which would go some way in explaining why 1 in 5 are having to return to work after retirement, because of poor planning and uninformed members!
A few things put in place will go a long way ensuring your members are fully informed and aren’t left in a situation where they are forced back into work.
Access to a portal and tools - Providing employees with 24/7 access to an online retirement income modeller is a game changer when it comes to retirement planning and financial education!
Access to advisers - Having a chat with an adviser will go a long way in clearing points up and discussing the numbers further!
Early communication - Communication 5 or more years before retirement means members are 2.5 times more likely to understand when they can afford to retire!
Everyone's circumstances are different, and retirement can throw up some costs that were never expected, but early planning and the correct support can ensure employees are as prepared as possible for a happy retirement!
By David Pugh - Managing Partner
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