A new survey from Hargreaves Lansdown[i] has revealed a ‘gaping chasm’ in retirement support with nearly a fifth (15 per cent) of savers saying they wouldn’t seek any kind of support in the run up to retirement, rising to a "worrying" 26 per cent amongst over 55s.
Hargreaves Lansdown also found that a further 16 per cent of savers wouldn’t know where to go for retirement information, while the most popular option, cited by 30 per cent of savers, was to go to family and friends when making financial decisions about their retirement.
Steve said: “There is a major advice gap in retirement planning which needs attention. People could spend twenty-five years or more in retirement, but they won’t have enough money to fund the lifestyle they expect. Our own research found employees would welcome support with financial planning and advice from their employer, but the reality is that too few businesses are offering this kind of service or tools and resources that could enhance financial decision making.”
Research from Punter Southall* amongst 1,176 HR professionals found over half (51%) of employers fail to offer any additional support to employees approaching retirement beyond contributing to their pension. Also, while a third of employers said they are unhappy about the level of retirement support they currently provide to employees, the majority (96%) would consider offering help to improve employees’ retirement income if it were free of charge.
Steve adds: “Employers have an opportunity to plug the advice gap and send employees off into retirement fully prepared, which most will find enormously valuable and could make a significant difference to their lives. Building understanding and confidence through financial education can encourage workers to save more for retirement, and providing access to financial planning and advice for those nearing retirement can help workers make the right decisions for their circumstances. There are many free digital tools employers could make use of too, even if they don’t have budget for anything more, which could go a long way towards improving retirement outcomes.”