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Employers urged to offer retirement advice to older workers

11 July 2012

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Almost two thirds of employers could miss out on retaining “vital” staff members by not offering any tailored retirement support to their older employees.

A Real Retirement Report from insurance company Aviva found 56% of employers have spent money on providing work place benefits such as pensions, private medical insurance, and annual bonuses.

Yet, despite this investment only a third (36%) of employers provide employees with guidance in the run-up to retirement.

More than one in ten people of retirement age responding to Aviva said they were still looking to work, at least on a part-time basis.

It is claimed a lack of guidance over an employee’s retirement options could lead to a loss of “vital skills” from older employees.

“In order to motivate and retain staff, many employers invest heavily in them through the provision of pensions and other benefits, but then let them drift away at retirement without providing any advice or support,” said Clive Bolton, Director at Aviva.

“The end to the default retirement age and growing financial pressures have seen a growing trend towards part-tirement, whereby older people look to cut back on their working hours but are not yet ready to stop working altogether.
“Employers who do not offer tailored retirement support to explain the options available, such as part-tirement, could find they are giving up on valuable employees with years of experience and knowledge.”          
The report found one in ten companies currently offer workers the option of part-time or flexi-time employment as they approach retirement, and 9% look at ways to extend the careers of their employees if they so wish.
More than 70% of the workers of retirement age said they found it “useful” when a company offered guidance over their retirement options.
The most popular types of retirement support were: workshops on retirement finances (35%) and written literature on retirement finances (35%).