With the advent of more defined contribution (DC) pensions and the wider choices at retirement as a result of the pension freedoms, more people than ever not only need guidance but also access to advice, as this research shows.
Employers are in a perfect position to arrange this help with targeted financial education and advice:
- Introducing pension engagement exercises for all DC employees throughout their career
- Providing those in the 10 year glidepath towards retirement with dedicated seminars, webinars and 121 guidance clinics to check they are on track and that they understand the decisions ahead and what they can do before then
- Targeted pre-retirement courses and access to 121 advice to help retirees to make the best informed decisions at retirement and to enable smooth and positive transitions into retirement
This type of support won't only make a huge difference to individuals retiring, but it also benefits their employer providing a structured framework in helping employees plan for retirement creating steady and smooth people management. It also enhances the employer brand for leavers and remaining employees who can see the level of care and support around what is a significant life event.
In those final years of planning for retirement and when accessing pensions it is crucial that people make good decisions. If they don't they don't have the time or opportunity to go back and do it all again.
So it is vitally important that everyone in the final years before retirement and at retirement gets guidance and access to advice. And the pension advice allowance and the pension advice exemption mean this doesn't have to be a cost drain for employers.
Employers urged to give more retirement planning advice Jenna Towler @PensionsJenPA 04 September 2009 Employers should do more to help their staff effectively plan for retirement, Scottish Widows says. The pension provider has joined forces with the Institute of Financial Planning to launch the 2009 Financial Planning Week which is focussed on pushing employers to offer better guidance on planning for retirement within the workplace Scottish Widows said figures from its fifth annual pensions report revealed more than three quarters of people would like some kind of guidance from their employer when it comes to pensions.