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With over half of UK adults worried they’re not saving enough for retirement, it’s likely that many members are feeling like this too. Here’s how your clients can support them in saving for their financial future.
Insights from our Retirement Voice 2024 research reveal that more than half (51%) of people are worried they’re not saving enough now for when they’re older. Millennials (those aged 28–43) are the most concerned generation of all, with two thirds (66%) saying they’re worried, followed by 60% of Gen Zers (aged 18–27), and 58% of Gen Xers (44–59).
Ultimately, it’s working age people who seem the most worried about their income in retirement. This puts employers in a unique position to provide members with the support they need to feel more confident about their financial future. Here are some ideas to help your clients get started.
Help members understand how much they’ll need
According to the PLSA, 77% of people don’t know how much they’ll need in retirement. In response, the PLSA developed the Retirement Living Standards, which helps people understand how much money they’ll need to have the retirement lifestyle they want. It provides a benchmark level of the annual income people will need to fund different standards of living in retirement – ‘minimum’, ‘moderate’, and ‘comfortable’.
Your clients could signpost members to the Retirement Living Standards website to help them understand what level of retirement they’re on track for, and how much they’ll need to fund their ideal retirement.
If your clients are with Standard Life for their workplace pension scheme, your employees can also use our Retirement Income Tool to picture their financial future. It incorporates the three different levels of the Retirement Living Standards so they can easily check if they’re on track to meeting their retirement goals.
Boost awareness of the State Pension
It’s also a good idea for your clients to boost awareness of how the State Pension works. For many people, it’s a key building block of their retirement income, so it’s important that members have all the facts.
Indeed, the amount members receive depends on how many qualifying years they have on their National Insurance (NI) record. Everyone’s record will be different, so it’s a good idea for members to check theirs. Your clients could signpost them to Government’s website, where they can check their State Pension forecast, and also how they can increase their qualifying years.
Encourage members to check how much they’ve got
It’s important for members to be aware that the full State Pension is actually below the PLSA’s ‘minimum’ Retirement Living Standard. So it’s crucial for members to find out how they can bridge this income gap. And this where their workplace pension comes in.
To help members understand how big that gap might be, your clients could encourage them to regularly check how much they’ve got in their workplace pension. Standard Life workplace pension scheme members can easily keep track using our mobile app. This can give them a solid understanding of how much they’ve got saved today, so they can better plan for tomorrow.
Support members with their everyday money
Of course, a big part of supporting members with their future finances is to support them with their day-to-day priorities too. Indeed, by helping members to budget for their everyday expenses, it can help build up their financial resilience for the future.
Your clients can help by pointing members towards tools and resources that make it easier for them to manage their money, such as MoneyHelper.
Standard Life workplace pension scheme members can also use Money Mindset* to help them budget and plan ahead. It allows members to see all their financial accounts in one place, making it easier to see where their money’s going. Plus, our Budget Planner helps them organise their everyday spending and budget for the future.
We based this article on our recent ‘Are you saving enough?’ Good Money Moods webinar. Members can catch up and watch on demand here.
To find out more about our webinars and how they help power-up members’ financial knowledge, visit our Good Money Moods page.
*Money Mindset is provided in partnership with Moneyhub Financial Technology Limited
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