Jonathan Watts-Lay: Increased retirement advice will be needed

As the baby boomers consider retirement, employers will need to do more to support them.  

Employees save for many years to fund their retirement income, but are often left without any guidance at the point of retirement. This is likely to change as we head into 2013. More organisations are now realising that employees need to make important choices not only about when they want to retire, but also how they can maximise their income in retirement.

Unsurprisingly, the decision an individual makes at retirement is becoming one of the biggest financial decisions they will ever make in their life. Poor decisions can potentially lose them thousands of pounds over the course of their retirement.

Our Rethink retirement survey 2012, published in December 2012, revealed that employers believe only 18% of employees are aware of the various retirement income options available to them, and as few as 13% are aware that they no longer have to purchase an annuity.

The research also revealed that 71% of employers believe there will be an increased requirement for specialist advice at retirement.

It looks as though 2013 will be the year when financial education and advice comes to the forefront for retiring employees.

Jonathan Watts Lay is director at Wealth at Work