Employers are in a strong position to help staff with retirement planning, even when it’s a diligent worker you’re not ready to say goodbye to.
You can provide resources and information to give them the best post-work life and give yourself insight into how you can plan and support them. By working together through a number of crucial steps, everyone can achieve the best outcome as the retirement date nears.
Key steps to planning for retirement:
- Discuss retirement plans with older staff at annual reviews, including expected retirement dates and retirement goals
- Work together to explore options such as reduced hours or role changes
- Provide resources and support for financial planning
- Create a plan that supports retirement
- Offer resources to promote hobbies, activities and interests outside of work
- Reevaluate timeframes and expectations regularly
- Assist your staff so they can achieve all their goals
Financial planning for retirement
Some of your staff will have the foresight to plan for retirement. They will have all their goals and holidays mapped out. Others have potentially lived from paycheck to paycheck and outside of their superannuation there may be no long-term investments. This is where an employer can step in with much-need advice for staff.
There are vital financial tips everyone should be aware of, no matter if they’re five years away from retirement or 20. These include:
- How much super is needed to support a retirement lifestyle
- At what age can super be accessed
- Ways to boost super before retirement
- When they can receive the Age Pension
- How significant assets, such as a house, investment properties or vehicles can be utilised in retirement
- Options for investment in retirement, such as shares or property
- The impact of part-time work on income streams such as the Age Pension
If you don’t do this already, consider bringing in independent financial advisors to present seminars to the staff. They can offer professional advice on financial planning and superannuation for workers of all ages. Their advice could prove beneficial for older workers nearing retirement age that haven’t sought out relevant advice.
The work-life transition
If financial planning is the most critical aspect of retirement planning, the transition to retirement is the most crucial time. A job provides purpose. For many, it’s their life; where they socialise, network and fill their time. A sudden stop could prove emotionally jarring. That’s why the work-life balance is essential.
Most Australians still see 65 as the retirement age, although statistics show that the average age of retirement is 55.4 years in Australia. But there are growing trends to work into the 70s especially as most people will not be able to access the Age Pension until they turn 67. Therefore, talk to your staff about their individual desires because one could be ready to leave the day they turn 65 while another might plan to work until they’re 70-something.
As part of the transition into retirement, you can offer them a reduced workload. Whether they’re a lifelong administrator, nurse or cleaner, fewer hours on the job could prolong their career or help them ease into retirement. You might find a new role is welcomed, as some staff might be ready to move behind a desk while others could be keen on something that keeps them moving and motivated, such as cleaning or catering.
Whatever the options, let your staff take the lead. They might have a fear of the unknown when it comes to life after work but you’re in a great position to support them with the best possible work-life balance.
Promoting retirement activities
Your staff might already be participating in hobbies and activities that keep them engaged regularly. But if not, here are some ideas for you to bring up with them:
- Volunteering
- Community sports (lawn bowls, tennis, swimming)
- Community groups (senior citizens clubs, board games, support groups)
- Household hobbies (gardening, arts and crafts, cooking)
- Holidaying and sightseeing
- Socialising with friends and family
- Working or volunteering at a small business, such as a second-hand store
As an aged care provider, you’re in the best position to provide support through volunteering. Staff with reduced hours, or those that have just retired, can remain connected with a community they love by volunteering within your organisation. This can give them a chance to try out new roles and just be involved on a semi-regular basis.
You could also partner with local organisations and sporting clubs where your staff can spend their time outside of work. Simply having accessible resources in your staff rooms can make all the difference as workers ponder retirement and their increased amount of time outside of work.
