EXCLUSIVE: Only two-fifths of employers offer at-retirement support

retirement support

EXCLUSIVE: Only around two-fifths (39%) of employers offer at-retirement support, according to research conducted by Employee Benefits and Barnett Waddingham.

The Employee Benefits/Barnett Waddingham pensions research 2018, which gathered 246 responses and was published in December 2018, found that this is consistent with previous years, as 40% of respondents provided this support in 2017, 46% did so in 2016, and 45% in 2015.

However, at-retirement support is becoming an increasingly pertinent issue, as 29% of employers stated that between 6% and 10% of their employees will be at or nearing retirement within the next decade. Two-thirds (34%) stated that between 6% and 10% of their workforce will be at this life stage in five years’ time, and more than two-thirds (68%) have between 1% and 5% of employees who will be at or nearing retirement in the next 12 months.

Of those employers that offer at-retirement support, assisting staff in making informed decisions is still the primary driver for the majority (68%). Beyond this, 44% of the respondents wish to ensure that employees have a smooth and positive transition out of the workplace; this is a 14% increase since 2017.

Goals centred around motivation and retention have grown this year, as just over half (51%) of the respondents want to support employees at retirement as it ties in with an ambition to be an employer of choice, a driver which has increased by 12% this year, meanwhile, 15% stated that it helps them to retain talent.

In a wider sense, more than half (58%) view providing at-retirement support as part of their duty of care, and just under half (49%) do this because it is part of their organisational culture. Of those who do not provide this support, the key reasons are lacking the resources (34%) and lacking the budget (30%).