As employees approach retirement, many face the challenge of managing financial responsibilities alongside other priorities.
While it's often assumed that older staff members have their finances in order, this isn't always the case
Here are seven practical ways you can provide support in the workplace.
Financial stress impacts productivity, retention and engagement
One of the top concerns for mid- to late-career workers is personal finances; 20% of UK employees aged 40-60 said worrying about their future retirement finances is affecting their ability to work.
Moreover, 70% of employees aged between 45-65 do not have financial wellness support available in their workplace.
One challenge for this age group is balancing financial responsibilities for both their children and elderly parents, while also saving for their own retirement.
Additionally, they often encounter greater social stigma around financial struggles, as there's an expectation that they should have it all under control.
The encouraging news is that the stigma around seeking help with finances may be easing, with many workers now turning to their employers for financial guidance.
Practical tips to support financial resilience:
1. Create an age-friendly workplace
Join the Age-friendly Employer Pledge and commit to hiring more mature workers while supporting them in reducing financial pressures through education and benefits. This can help them stay in work longer, explore partial retirement, or even return to mentor others, allowing your organisation to continue benefiting from their valuable expertise.
2. An inclusive benefits package
Evaluate your benefits to ensure they are inclusive of your ageing workforce. Eliminate age restrictions on insured benefits and highlight offerings that support older employees. These include retirement planning resources, health and wellness programmes and apps, and caregiver support which helps employees to understand, find and fund care for their elderly loved ones.
3. Prioritise healthcare
Sickness, injury, or disability is a leading reason why adults aged between 50 and 64 might not be in work, so it’s vital to prioritise healthcare support. Provide age-specific health screenings, mental health resources, and menopause support through workplace hubs and digital tools such as the Menopause in the Workplace Resources Hub. These initiatives help experienced employees maintain their wellbeing and continue contributing effectively to the workplace.
4. Flexible working
Many senior workers can’t afford to retire but have health concerns or personal commitments that make it difficult to work a 9-5 job. By offering flexible work arrangements, you can help them to continue earning, and promote work-life balance, leading to increased job satisfaction and productivity. Other options include flex time, compressed work schedules, part-time or job-sharing roles.
5. Support with retirement planning
Ask employees about their retirement goals, whether it's covering household bills or traveling the world. Guide those who are uncertain to the Midlife MOT, a government service for long-term planning. Consider offering phased retirement options, allowing seasoned staff to transition gradually while you manage succession planning.
6. Pensions support
Provide clear information and guidance to employees about workplace pension benefits and the state pension. While the level of pension contributions you put into your workplace scheme is up to you, a 2022 survey found that matching employees' pension contributions was placed third on the most highly valued employee benefits.
7. Financial planning
Over 75% of employees aged 45 to 65 report that having control over their finances significantly reduces stress. Equip your employees with the tools to understand retirement planning, including savings and retirement programmes that enable them to draw down income while continuing to work.
In the UK, the number of people working beyond age 65 reached record levels in 2022. A tight labour market and declining birth rates mean workers in their 50s and 60s are essential for addressing critical skills gaps and vacancies.
By strengthening their financial resilience, employers can fully leverage the wealth of experience these employees have developed over their careers—free from financial worries that may impact engagement and productivity.
