How to help your employees make retirement planning decisions with confidence

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When retirement decisions look different for everyone, how can employers best support their employees in planning for retirement? Find out how tools like our Mixed Income Builder and Retirement Hub can help you provide the right support at the right time.

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When it comes to deciding what to do with their pension savings, how confident do your employees feel? If they’re anything like the 6,000 UK adults we spoke to when conducting our Retirement Voice 2025 research, many may be feeling unsure.

Indeed, our research revealed that a third (32%) of over 50s with a Defined Contribution (DC) pension plan say they’re not confident about how to turn their pension savings into an income.

So how can you provide effective support and help employees who are approaching retirement in making those all-important decisions?

Here are three practical steps you can take today.

1. Gather feedback to understand employees’ retirement planning needs

Retirement needs can differ greatly from one employee to the next. And it’s not just about pension pot size and their financial circumstances – it’s about recognising that every employee manages their money and makes decisions in different ways.

For instance, some may want to opt for a simple default retirement option, and minimise the time spent thinking about and preparing for retirement.

For many others, they’ll want to explore the different retirement options available, and need clear guidance to help them understand what’s right for them.

That’s why it’s important to make your retirement planning support as personal as your employees’ retirement needs.

To do this, it’s a good idea to gather employee feedback. You could send out a survey to those approaching retirement, to understand what their priorities are and what type of support would be helpful.

Based on the results, you can signpost employees to relevant resources, such as our Retirement Hub. This combines information, education, and interactive tools to help boost employees’ confidence around making retirement decisions. You could also signpost to online resources like MoneyHelper, which covers a range of topics around financial planning for retirement.

2. Provide retirement planning tools that offer clarity

According to our Retirement Voice 2025 report, when people who aren’t yet retired think about what they want from their pension savings, the top two answers are a guaranteed income for life (89%) and flexible access to pension savings (79%).

'Fix and flex’ models may be able to provide what people want, allowing them to cover their essential spending with a guaranteed income and take the rest flexibly through drawdown.

Whilst this option introduces more choice, it also introduces further complexity. Many employees may be unsure of how much of their pension savings they should earmark for a guaranteed income and for drawdown.

To help, signpost to retirement planning tools that give employees more clarity and confidence in making informed decisions.

Our Mixed Income Builder, for instance, offers them a more structured way to think through their spending needs in retirement, allowing them to get the balance right between security and flexibility. They can add in details about their pensions and check whether they’re on track to cover their basic costs, based on Pensions UK’s Retirement Living Standards. Standard Life workplace pension scheme members can also access an enhanced version of the tool directly from their online dashboard, where they can set their own income target and see what difference changing their retirement date could make.

3. Make it easier for employees to compare their retirement options

Since Pension Freedoms came into effect in April 2015, people with DC pensions have had more choice over how they can take their pension savings. But with greater flexibility comes greater responsibility over complex decisions.

If your employees are facing multiple pension options and aren’t sure what’s right for them, they may find it helpful to weigh up the pros and cons.

You could signpost to our retirement options tool, which allows employees to compare the different ways they can take their pension. They’ll see how much they’d get from each option, how long their income could last, and the tax implications of taking different cash lump sums.

Designed in clear, jargon-free language, our tool provides guidance rather than nudging employees towards any particular outcome. It will also signpost them to further support, such as MoneyHelper’s Pension Wise service.

Ultimately, by getting a visual comparison of all the options in one place, this can make it easier for employees to see which one aligns best with their retirement needs – and make confident decisions that are right for them.

For more information on how to support your employees, take a look at our financial wellbeing articles for some ideas and inspiration.