Since 2006, apart from a few special occupations, employers can no longer require employees to retire at a given age and each employee can decide when they want to cease work. This can raise questions of manpower and succession planning for employers who could find several key staff retiring all at once or conversely opportunities for the promotion of others blocked.
Increasingly individuals are facing less certainty around the retirement income they will have to fund their future lifestyle, as more retirement income depends upon investment returns, while the age at which state pension becomes payable rises.
This uncertainty can mean that some older workers may be working longer than they would like to and are missing the opportunity to enjoy retirement while still fit and healthy. Knowing when it is the right time to give up work is not always straightforward, and research shows that many older workers would like help in making the decision.
Employer sponsored retirement counselling can help resolve this dilemma so that employees can enter retirement with confidence. For some people retirement can be planned as a gradual process, reducing hours and responsibilities, along a glide path into full retirement. This helps businesses achieve a smoother handover and is a valuable employee benefit.
LEBC Retirement Planning Services
LEBC offers a retirement planning service covering the financial needs of retiring employees. This can be provided as guidance to groups of employees who may wish to attend one of our retirement seminars or on an individual basis, as regulated advice, taking account of personal circumstances. For larger employers in house seminars and workshops can be provided. It considers lifestyle, healthcare, State pensions, workplace pensions, other investments, tax planning, inheritance and care provision. Partners are invited to attend so that their perspective on retirement plans can be considered.
This may be funded by the employer or employee or a combination of both. Employers can fund access to financial advice for up to £500 per employee per year as a tax -free benefit. Employees who wish to pay may do so and if paid using salary sacrifice, they will save between 33% and 47% of the cost, depending upon their personal tax band. Employees can also elect to pay for advice directly from their pension fund.
To get more for your business and for your staff contact your usual LEBC adviser or firstname.lastname@example.org or call 0800 055 6585 and we will be pleased to discuss how these services could be made available to you.
Public Policy Director
Please remember, no news or research item is a recommendation or advice to buy. LEBC Group Ltd is not responsible for accuracy and may not share the author’s views. The contents of this blog are for information purposes only and do not constitute individual advice. All information is based on our current understanding of taxation legislation and regulations.Back to News & Views
Please click on the link below to download a PDF version of this blog.Download