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Half of UK workers expect they will need to work beyond State Pension age – yet far fewer feel confident they can.
This disconnect highlights a growing challenge for employers and advisers alike. While retirement is happening later in practice, expectations have not kept pace – leaving many employees facing a widening gap between aspiration and reality.
Standard Life research shows people are now retiring, on average, five years later than they did in 1994. Employees ideally want to retire at around age 62, but expect it will be closer to 67.
Crucially, this “retirement expectation gap” is not evenly distributed. Those who are financially struggling face a gap of 7.7 years, compared to just 2.5 years for those who feel financially comfortable.
At the same time, confidence in working longer is falling short. While 80 per cent of employees believe they could continue working to age 60, this drops to just 49 per cent by age 70 – a concern given that 50 per cent expect they’ll need to continue working beyond their State Pension age.
Lower-income groups, in particular, are caught in a difficult position: more likely to need to work longer, but less confident they’ll be able to.
Against this backdrop, passive pension provision is no longer enough. Employers – supported by advisers – have a critical role to play in helping employees close the gap. Here are six ways you can support your clients to do this:
1. Maximise the impact of employer contributions
Matching contribution structures are one of the most effective ways to drive better saving behaviours – but only if employees understand the value.
Clear, consistent communication can encourage employees to increase contributions beyond minimum levels and fully benefit from what is often seen as “free money”.
2. Simplify bonus sacrifice messaging
Bonus sacrifice remains underused, often due to complexity.
Employers should focus on straightforward, outcome-led communications – showing how directing a bonus into pension can reduce tax and National Insurance while boosting long-term savings. With changes to salary sacrifice ahead, this is one that can be used effectively over the next few years.
Read more about making the most of salary sacrifice before April 2029.
3. Strengthen financial wellbeing through education
Financial confidence underpins retirement readiness and improves financial wellbeing. Employees who feel more in control of their day-to-day finances are more likely to engage with long-term saving.
Signposting to accessible, trusted guidance like MoneyHelper – alongside flexible, bite-sized workplace content – can help employees build enough knowledge to take meaningful action.
If your client is with Standard Life for their workplace pension scheme, their employees can get access to bitesize content, tools, and videos through our Money Mindset platform*. Covering topics such as managing everyday money and planning for retirement, it allows employees to improve their financial knowledge whenever and wherever it suits them.
4. Help employees reconnect with lost pensions
Fragmented careers mean many employees hold multiple pension pots, often without a clear view of their total savings.
Supporting employees to trace old pensions, using tools such as the Government’s Pension Tracing Service, can provide a more accurate picture of their retirement position – and act as a catalyst for increased engagement and contributions.
Standard Life workplace pension scheme members can also use our Pension Finder tool, available through Money Mindset*. This takes their employment history details from LinkedIn and uses these to automatically search the Pension Tracing Service – making it quick and easy to find old pensions.
5. Bring retirement outcomes to life
Pension saving can feel abstract. Translating savings into potential income can make it far more tangible, and using retirement planning tools can help bring this to life.
Standard Life’s Retirement Income Tool, is available to all our workplace pension scheme members. It can help employees model outcomes and scenarios helping them understand what their future could look like – and what actions they may need to take now.
6. Use data to target those most at risk
Not all employees face the same level of risk. Data insights can help identify those likely to fall into lower Retirement Living Standards bands, particularly “minimum” or “below minimum”.
Our Client Analytics platform incorporates data from Pensions UK’s Retirement Living Standards; this allows employers and advisers to move beyond broad engagement to targeted interventions – focusing support where it can make the biggest difference.
From provision to proactive support
The retirement expectation gap is not just a savings issue – it is an engagement and planning challenge.
Employers who take a more proactive, targeted approach – supported by advisers – can significantly improve outcomes, particularly for more vulnerable groups.
In doing so, they not only help employees retire on better terms, but also support a more productive, resilient workforce.
Because closing the retirement gap isn’t simply about helping people save more – it’s about helping them achieve a retirement they would like.
To read more articles from Standard Life visit the content hub on Corporate Adviser – here.
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*Money Mindset is provided in partnership with Moneyhub Financial Technology Limited.
Phoenix Life Limited, trading as Standard Life, is registered in England and Wales (1016269) at 10 Brindleyplace, Birmingham, B1 2JB.
Phoenix Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
