Employers are getting retirement support wrong if they’re only talking about pensions

By Michelle Robinson Hayes, mental health trainer and preventative services lead, Vita Health Group

Retirement has long been viewed as a financial milestone: save enough, reach the right age and enjoy the freedom that follows. But this narrow outlook disregards the reality of retirement today, which looks considerably different to the decades before.

New research from financial services group Aegon highlights just how much retirement expectations have changed among people in the UK. Only 16% of people expect to enter full retirement, while one-in-three anticipate continuing to work in some capacity. Of these, 17% expect to work differently in retirement, while 13% do not plan to consider themselves retired at all.

These findings should prompt a really important question for employers: are you providing your employees with the support they need to thrive in this new landscape of retirement? Retirement is no longer a straightforward departure from working life. Staying in work will be a financial necessity for many, whilst for others it may be a conscious decision to maintain a sense of self and purpose. Many will want something in between and may gradually reshape their working lives around changing priorities like caregiving responsibilities and health conditions.

That requires a change in focus for employers too, from considering whether employees are financially ready to retire, to how they’ll adapt to life beyond work.

The transition to retirement is rarely without challenges. Leaving the work environment may be a seamless transition for some, but for many it will raise difficult questions about who they are outside their professional role, and where they find their sense of self.

A loss of routine and regular connection can also leave people open to the vulnerability of loneliness and isolation – which is certainly one of the most dominant concerns employees share in the therapy room. A large-scale study undertaken by Tulane University recently, suggested that loneliness can cost years of healthy life, with an especially striking toll on mental health.

These distinct changes to daily life can make the prospect of retirement feel less like an exciting chapter and more of an uncertain one. Which is exactly why retirement deserves a place in the wider employee wellbeing conversation.

Five ways employers can support employee wellbeing in retirement

Organisations don’t need to have all the answers, but they can make a really significant difference by helping employees to prepare, in a way that works for them. Here’s how employers can begin to put mental wellbeing at the heart of the retirement conversation:

1. Start with the individual, not assumptions: I think it’s key to highlight that retirement is a deeply personal experience, which makes curiosity and intrigue two of the most powerful tools at an employer’s fingertips. With that in mind, it’s important that managers create opportunities for honest, informal conversations about future aspirations and concerns, without making employees feel pressured to retire. Discussing possibilities like reduced hours, phased retirement or alternative roles can help people understand that they do have choices, and can retain a sense of control over their next steps.

2. Help people build connections beyond work: Given how much work forms our sense of identity, it can help to encourage employees to think about, and develop, interests outside of their professional role. Volunteering, mentoring, learning something new or joining local groups can all provide opportunities to connect with others and discover new sources of purpose. Retirement does not mean an end to someone’s contribution in the world, it can simply mean the beginning of a new chapter of contribution.

3. Make flexible working part of the conversation: A gradual change can be easier to manage than an abrupt end to working life. Where business needs allow, consider options such as reduced hours, part-time arrangements, adjusted responsibilities or greater flexibility over where and when work takes place. These arrangements can give employees time to adapt to a different routine, and support changing healthcare experiences such as menopause. Ultimately, it means organisations will retain valuable and experienced talent for longer.

4. Recognise the changing health and wellbeing needs of older employees: People’s health needs can change as they get older, and workplace support should reflect this. Menopause, physical health conditions, caring responsibilities and mental health challenges can all influence someone’s experience of work and their plans for retirement. Accessible health resources, appropriate adjustments, supportive management and confidential mental health services can make a meaningful difference. Employers should avoid making assumptions based on age, and work to create an environment where people feel comfortable discussing the adaptations that would help them to remain, and thrive, in the workplace.

5. Extend wellbeing initiatives to the retirement transition: Workplace wellbeing programmes can do more than help employees manage the pressures of their current roles. They can also help people develop habits and skills that support their next chapter. Alongside familiar initiatives such as physical activity, mindfulness and access to counselling, employers could offer retirement preparation sessions covering changes in identity, maintaining social connections and adapting to a new routine.

Getting retirement right benefits everyone

Retirement is one of the biggest transitions we can go through in life. Of course, financial education remains important, but combining it with guidance on emotional wellbeing provides a more rounded approach to preparing for the chapter beyond full-time work.

Employers already recognise the value of supporting wellbeing throughout an employee’s working life, and retirement really should be no different. Helping employees to build a future they feel ready to step into – whether that involves leaving work entirely or continuing work in a more hybrid capacity – provides benefit to both parties; employees are more likely to feel confident, valued and certain about the next step, while employers can retain valuable experience for longer, and demonstrate a genuine commitment to people at every stage of their lives.