PMI Crest
PMI
Planning for retirement should lead to improved member outcomes
15 November 2021

Planning for retirement should lead to improved member outcomes

Insight Partner

The past year and a half has been a challenge for many of us in one way or another, with many people suffering from ill health, financial or mental wellbeing issues. However, for those approaching retirement, one of the biggest problems faced during the pandemic has been the impact it has had on their retirement plans.

Our latest survey has provided some insight into this and indicates that the pandemic has affected people’s retirement plans in different ways. It revealed that more than a fifth (22%) of workers approaching retirement (age 50+) say it has made them want to retire earlier and as soon as they can. Conversely, 13% want to delay retirement because they have realised they enjoy working. However, just over one in ten (11%) have had to delay retirement as they can no longer afford to retire, perhaps as a result of their savings taking a hit due to reduced household income, or a fall in the value of their pensions and investments.

Whilst all this uncertainty can make retirement planning very challenging, what is certain is the more people prepare for retirement and review and adjust their plans as their circumstances change, the more likely they are to be able to deal with all eventualities. Whether that is realising that they can’t yet afford to retire so have to work for longer, or even that retirement is more affordable than they thought.

Many employers and Trustees recognise that their pension scheme members will need help with their retirement planning and are putting support in place including financial education, guidance and regulated financial advice.

As part of an overall wellbeing strategy, many companies are seeing the benefit of sourcing specialist retirement providers to help with this. Carrying out due diligence on providers can make the process far more robust. This should include checking that any financial education and guidance providers are workplace specialists with experience in providing support to members. Due diligence on regulated advice firms should cover areas such as; qualifications of advisers, the regulatory record of the firm, compliance process e.g. compliance checks of 100% of cases, pricing structure, and experience of working with employers and Trustees.

Ultimately, supporting members by providing them with access to appropriate retirement specialist support, should lead to improved member outcomes.

Notes/Sources

This article was featured in Pensions Aspects magazine November/December edition

back to Pensions Aspects Magazine

Last update: 12 November 2021

Jonathan Watts-Lay
Jonathan Watts-Lay
WEALTH at work
Director

Head of Pensions, In-house Scheme (Mix of Office and Homeworking)

Salary: £40000 - £75000 pa

Location: Mix of Office (West Midlands) and Homeworking

Pensions Technical & Compliance Specialist, In-house Scheme (3 days office/ 2 days home)

Salary: £40000 - £70000 pa

Location: 3 days office (Central London) and 2 days homeworking

Pension Audit Manager

Salary: £50000 - £70000 pa

Location: Surrey

You may also like:

The top concerns trustees have for members approaching retirement
15 September 2021

The top concerns trustees have for members approaching retirement

There are many risks around accessing pensions which have become increasingly complex and uncertain. With this in mind, WEALTH at work conducted some research with the Pensions Management Institute to look at this in more detail and have revealed the results.

Read more
Turning the tide on pension scams
07 June 2021

Turning the tide on pension scams

These uncertain times are often seen as a window of opportunity for scammers looking to prey on vulnerable individuals. A report by Action Fraud found that pension scams had become one of the most common types of fraud to occur last year. The pensions industry is facing pressure to do more to prevent this situation, but what role can trustees play?

Read more