Employees not doing enough retirement planning

Employees are not doing enough to plan for their retirement, according to new study from the Institute for Employment Studies (IES).

Its study Should I stay or should I go? found many employees, particularly those in their early 50s, have done little in the way of forward planning for retirement.

It also found there is a general lack of conversation about later life planning between employers and employees. Many staff believe these conversations can be awkward and difficult; and older employees wished they had discussed later life planning throughout their career on an informal and non-binding basis.

Employees also expressed confusion and frustration at the complexities of the pensions system. 

Marie Strebler, associate fellow at the IES, and one of the report’s authors, said: “Employers seem to be stuck in reactive mode. They provide retirement support, however, they are failing to encourage people to stay, treating requests on a case-by-case basis and thus missing opportunities to retain much needed and valuable skills.

“Older workers are an asset, but a tremendous shift in deep-seated stereotypical attitudes to ageing and work is required if employers want to foster a culture where early retirement and prolonged working lives co-exist. This can only be achieved with an open and continuous dialogue between line managers and individuals, and through support by HR policies and practices.”

Read more articles on pensions