As we have discussed previously on these pages, there are many employees who have limited, or no, pension savings, and are now close to their expected retirement ages. Auto-Enrolment has probably come too late for this grouping, and is unlikely to significantly improve their pension income.
Since the abolition of the Default Retirement Age (DRA), employers have been largely unable to forcibly retire an employee on age grounds alone. This has the potential to lead to workforce stagnation, which can be really bad news for employers.
So how can employers get around this conundrum? One method would be to provide the employee with some assistance in better understanding their retirement income needs, which in turn may make the employee’s retirement decision somewhat easier to make.
This is just one component of helping those employees close to retirement age, and such assistance can also benefit the employer.
For more on this subject, please see a recent article on this topic:
I will also be covering this topic (amongst others) at our next London event.
Best regards
Steve
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