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When retirement decisions look different for everyone, how can employers best support members in planning for retirement? Find out how tools like our Mixed Income Builder and Retirement Hub can help your clients provide the right support at the right time.
When it comes to deciding what to do with their pension savings, how confident do members feel? If they’re anything like the 6,000 UK adults we spoke to when conducting our Retirement Voice 2025 research, many may be feeling unsure.
Indeed, our research revealed that a third (32%) of over 50s with a Defined Contribution (DC) pension plan say they’re not confident about how to turn their pension savings into an income.
So how can employers provide effective support and help members who are approaching retirement in making those all-important decisions?
Here are three practical steps your clients can take today.
1. Gather feedback to understand members’ retirement planning needs
Retirement needs can differ greatly from one member to the next. And it’s not just about pension pot size and their financial circumstances – it’s about recognising that every member manages their money and makes decisions in different ways.
For instance, some may want to opt for a simple default retirement option, and minimise the time spent thinking about and preparing for retirement.
For many others, they’ll want to explore the different retirement options available, and need clear guidance to help them understand what’s right for them.
That’s why it’s important for your clients to make their retirement planning support as personal as their members’ retirement needs.
To do this, it’s a good idea to gather member feedback. Your clients could send out a survey to those approaching retirement, to understand what their priorities are and what type of support would be helpful.
Based on the results, your clients can signpost members to relevant resources, such as our Retirement Hub. This combines information, education, and interactive tools to help boost members’ confidence around making retirement decisions. Your clients could also signpost to online resources like MoneyHelper, which covers a range of topics around financial planning for retirement.
2. Provide retirement planning tools that offer clarity
According to our Retirement Voice 2025 report, when people who aren’t yet retired think about what they want from their pension savings, the top two answers are a guaranteed income for life (89%) and flexible access to pension savings (79%).
‘Fix and flex’ models may be able to provide what people want, allowing them to cover their essential spending with a guaranteed income and take the rest flexibly through drawdown.
Whilst this option introduces more choice, it also introduces further complexity. Many members may be unsure of how much of their pension savings they should earmark for a guaranteed income and for drawdown.
To help, your clients could signpost to retirement planning tools that give members more clarity and confidence in making informed decisions.
Our Mixed Income Builder, for instance, offers members a more structured way to think through their spending needs in retirement, allowing them to get the balance right between security and flexibility. They can add in details about their pensions and check whether they’re on track to cover their basic costs, based on Pensions UK’s Retirement Living Standards. Standard Life workplace pension scheme members can also access an enhanced version of the tool directly from their online dashboard, where they can set their own income target and see what difference changing their retirement date could make.
3. Make it easier for members to compare their retirement options
Since Pension Freedoms came into effect in April 2015, people with DC pensions have had more choice over how they can take their pension savings. But with greater flexibility comes greater responsibility over complex decisions.
If members are facing multiple pension options and aren’t sure what’s right for them, they may find it helpful to weigh up the pros and cons.
Your clients could signpost to our retirement options tool, which allows members to compare the different ways they can take their pension. They’ll see how much they’d get from each option, how long their income could last, and the tax implications of taking different cash lump sums.
Designed in clear, jargon-free language, our tool provides guidance rather than nudging members towards any particular outcome. It will also signpost them to further support, such as MoneyHelper’s Pension Wise service.
Ultimately, by getting a visual comparison of all the options in one place, this can make it easier for members to see which one aligns best with their retirement needs – and make confident decisions that are right for them.
For more information on how to support members, take a look at our financial wellbeing articles for some ideas and inspiration.
To read more articles from Standard Life visit the content hub on Corporate Adviser – here.
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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.