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Work pattern changes come in many forms. Whether a member moves from full-time to part-time hours, takes a career break, or adjusts their hours for a period of time, these decisions can have a noticeable effect on their future retirement income.
But until recently, it’s been difficult to get a clear picture of what these changes might mean in practice. Being able to view both a current projection and an adjusted one based on changes to working patterns in a simple format can provide members with a valuable perspective.
Below, we explore the importance of clearer understanding when it comes to supporting members with retirement planning.
Why clearer understanding matters
People move to part-time work for many reasons – caring responsibilities, health challenges or simply a desire to adjust the balance between work and home life. These changes can be positive and can allow people to remain in employment while continuing to earn and save, but they may also reduce the amount going into their pension. Over time, this can influence the income they receive in retirement.
Research from the Standard Life Centre for the Future of Retirement shows that women are particularly affected by changes in working patterns. Life events such as motherhood, divorce, childcare and menopause often lead to shifts in hours or time away from the workforce. This, in turn, can affect their ability to save.
Our Caught in a gap – the role of employers in enabling women to build better pensions report highlights that by the age of 50, when one in four women have caring responsibilities, men (aged 45-54) are contributing around 50% more per month (£80) into their pensions. The Retirement Voice 2025 report also found that men were more likely than women both to have increased their pension contributions and to feel positive about their current financial situation.
Taken together, these insights underline the need for practical and more personalised information to support better decision-making.
Turning insight into understanding
Tools that allow members to explore different working patterns can help turn abstract projections into something that’s more meaningful. If they can model how changes like working part-time or taking a career break might affect their future income, members can better understand the long-term implications of the decisions they’re making now.
Within Standard Life’s Retirement Income Tool, for example, there’s a new feature that allows members to compare alternative scenarios side by side.
Having access to personalised projections gives members a meaningful view of their financial future. It can help them feel more confident in the decisions they make about their working lives and highlight practical steps they may take to offset any reduction in contributions, such as increasing payments for a period of time or checking their nominated retirement date.
Supporting financial wellbeing in the workplace
For your clients, tools that help members understand the long-term impact of their financial decisions can play a helpful role within a wider financial wellbeing strategy. Many organisations recognise the effect that financial uncertainty can have on members, particularly during periods of change.
Clear, accessible insight into how working pattern changes could affect future retirement income can help reduce that uncertainty and prompt more informed conversations about long-term planning between your clients and their members.
Giving members confidence in their financial futures
Working patterns are becoming more flexible, and many members will move in and out of different arrangements over the course of their careers. Understanding how those changes may affect long-term retirement income is therefore becoming increasingly important.
Clear and personalised insight can help members plan with more confidence and make informed decisions that reflect both their current circumstances and their long-term goals. Over time, this improved understanding can support stronger engagement with retirement planning as working lives continue to evolve.
To read more articles from Standard Life visit the content hub on Corporate Adviser – here.
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This information is not intended to be financial advice. If unsure, employees should speak to a financial adviser.
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.
