will require attention. For example, would the employee prefer to take a tax-free lump sum or receive a larger ongoing income? Such decisions will require a holistic approach to assessing total assets and lifestyle expectations. Responsible employers can choose to offer three main types of retirement services: Pre-Retirement Planning: As employees gradually approach retirement, they are likely to benefit from services that make them aware of all the decisions they will need to make, as well as the range of options open to them. These services are usually provided in face-to-face, or increasingly online, workshops that focus on education and support, covering both financial and non-financial topics. Planning sessions normally begin by encouraging the employees to consider their lifestyle objectives for retirement. Once they have decided their objectives, they can work backwards to build a financial plan that would facilitate meeting those objectives. Retirement Planning Discussion: Many leading employers offer a telephone-based service to guide employees through the pensionsrelated decisions they will need to make as they approach retirement. Such services are most effective when offered just before decisions need to be taken. Financial Advice: Employees with complex financial needs are likely to require the services of a financial advisor , which the employer can opt to facilitate and/or finance. Some employees will need financial advisor services to develop even a basic plan for their retirement following a retirement planning discussion. In addition to those set to retire, financial advisor services may be useful to those changing their pattern of work. At Mercer Marsh Benefits (MMB), we recommend that employers take a two-stage approach to supporting employees through the off-boarding process: evaluate and address. The evaluate stage entails auditing processes to understand how well they support those leaving the company. It means assessing exit communications and ensuring they clearly state key information, such as the date the employee is no longer covered by their employee benefits, as well as directing them towards suitable alternative products and support. The address stage involves considering how your existing arrangements could be improved. What could the company do to affordably improve the leaving process, helping the business to be remembered as a responsible employer at all stages of an employee’s career? We recommend working with an employee benefit consultant that understands best practice, across all economic sectors, for supporting employees considering retirement within the next year. It is critical for the consultant to understand the market – across pensions, insurance, and beyond – so they can help ensure there are no gaps in your support policies and ensure the options are competitively priced. The consultant also needs to understand your business, to ensure the off-boarding process is both robust and good value for both parties. A comprehensive and smooth off-boarding process can provide the perfect ending to productive relationships between the employer and its employees. At MMB, we strongly believe that if you look after your employees, they will look after your business. To see how we can support you with your ‘off-boarding’ processes and policies, please get in touch. Company: Mercer Marsh Benefits Contact: Katie Cook Email: [email protected] Website: www.mercer.com
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