Retirement planning can seem like a daunting and overwhelming task for many individuals. However, the key to unlocking the mystery is financial education and engagement. This blog highlights how empowering employees and scheme members with the tools and knowledge they need to make informed decisions about their financial future can create a more financially secure workforce.
With the cost of living crisis adding almost 20% to the minimum cost of retirement, it's no surprise that people are feeling overwhelmed and unsure about their prospects.
To help individuals make sense of their retirement options, we’ve launched EVDirect Quick Tools, a series of digital guidance solutions designed to help pension and employee benefits providers better serve their clients. These tools, based on the Retirement Living Standards from the PSLA, use simple questions to help employees and scheme members to calculate their future financial position and the budget required to achieve their desired standard of living.
"What lifestyle could I afford when I retire?" "What expenses will I need to cover in retirement?" "What's the impact on my retirement if I save more?" These are just some of the questions Quick Tools help employees answer. The easy-to-use software provides individuals with a clear understanding of their financial situation and the impact of their decisions on their future lifestyles.
With EV's proven modelling expertise, Quick Tools also offer clear outputs to improve engagement and support positive decisions for retirement planning.
When you look at your total pension pot in isolation, it's hard to understand it in terms of the lifestyle you'll be able to afford when you retire.
Our Pre-Retirement Quick Tool has already supported over 2,500 retirement calculations, giving those currently saving for retirement a realistic idea of how much money they will need to fund the lifestyle they want in later life.
Pre-Retirement Quick Tool
Consumers can make informed decisions about their pension contributions. With soaring inflation, it's becoming increasingly important for people to understand the impact of their choices on their future funds. In addition, improving understanding and engagement with pensions can encourage your employees or scheme members who need to pause contributions to restart them as soon as their financial position improves.
Another benefit is that they can be integrated directly into the provider's portal or platform, offering easy access and a seamless user experience. In addition, with custom branding options, providers can match the tools to their existing materials, ensuring a cohesive customer journey.
In conclusion, with the right support tools and financial guidance, individuals can know that their retirement planning is on track. They can make informed decisions about their future and plan for a comfortable retirement by clearly and mentally understanding their financial options.