Wednesday, July 11, 2012

United Kingdom: Employers Failing at Supporting Older Workers at Retirement

According to a report prepared for Aviva, almost two-thirds of United Kingdom employers offer no tailored retirement support to their older workers. The "Aviva Real Retirement Report" finds that 64% of businesses don’t offer any tailored retirement support, even though 70% of employees who received support found it useful. In addition, the report finds that the number of employees deferring their state pension continues to increase.

Aviva notes that 56% of employers have spent money on providing work place benefits such as pensions, private medical insurance, and annual bonus, but that only 36% provide employees with guidance in the run-up to retirement:
This lack of guidance not only highlights a lack of commitment to employee benefits but is also likely to lead to a loss of vital skills from older employees. Almost a third (32%)* of those who qualify for the state pension are still looking to work – at least on a part-time basis – so by engaging with an employee’s retirement planning a business may be able to keep their valuable employees for longer.
Interestingly, the main focus if the 36% of employers who recognise the benefits of providing support to older employees is on enabling them to remain working for longer if they choose. "One in ten companies say they offer workers the option of part-time or flexi-time employment as they approach retirement, and 9% look at ways to extend the careers of their employees if this is what they wish to do."

Source: Aviva News Release (July 11, 2012)

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