The recent release of the new1Retirement Living Standards by the Pensions and Lifetime Savings Association (PLSA) is very much the talk of the town. Those of us who work in the industry, we have a duty of care to help educate and support people.
Issues with the retirement standards and cost of living
It doesn't take long to see the biggest problem with the retirement living standards hike. While the minimum living standard has jumped from £12,800 to £14,400 (for a single person), the
2Government's solution to increase the State Pension in April 2024 doesn't quite cut the mustard.
This is especially true when you take into account, for instance, the fact that the standards don't take housing into account. Not to mention the significant shortfall between the standards and the full state pension. And we cannot ignore the current cost of living crisis, increasing energy costs and an unstable employment market and rising interest rates.
Today's reality
The truth is that we cannot predict what the future will look like when we retire. But in the here and now, families are facing having to choose between putting food on the table, keeping warm in winter or squirreling away money for a rainy day, let alone even thinking about retirement.
A recent survey by the3Mental Health Foundation found that 34% of UK adults surveyed felt anxious about their financial circumstances, 29% felt stressed and over 41% were choosing not to put the heating on in their homes. In the report, the Foundation highlights one of the key drivers of prevention is in providing financial support schemes including money advice and relief schemes, to help those struggling with the cost of living.
Small changes today to support a better tomorrow
Instead of relying on the government to make drastic changes to match the scale of the challenge, we at Gallagher can also lend our support. Clear, meaningful communications that connect with people and highlight what small, incremental changes can make to someone's financial wellbeing can help people to navigate the financial impact and decisions they need to make.
Support where it's needed
At Gallagher we see time and time again the behavioural changes we can make. To name a few:
- Financial education - tailored to the audience's needs, supported by stories, videos or articles.
- Supportive wellbeing resources - providing step-by-step guidance using intuitive design and engaging visuals.
- Tools to support understanding - helping people to see the impact their decisions can make to their finances, whether that be through matching employer contributions, benefiting from compound interest or changing their investment strategy.
Start your journey with us today
To help make a difference by supporting our clients and their members, we're offering new clients:
- 25% off the cost of a 12-month subscription4 to our Hitting the Target modeller
- A free awareness campaign for existing clients with the modeller5
- 25% off the cost of our awareness campaign for clients who don't already have the tool
Our Hitting the Target modeller draws on the PLSA's retirement living standards and engages users in a fun, visually appealing and effective manner. Simple to use, it creates a visual story of what retirement could look like depending on the choices the user makes. We recommend coupling this tool with online education guides, as well as links to additional tools, to help highlight the difference small, incremental changes can make in creating a better financial future. For example, our Small Change, Big Savings and Cost of Delay tools provide, in a user friendly, easy to navigate way how simple steps you can make today can support a better financial future tomorrow.
We also know that while not all pension schemes can afford online tools, all members deserve high quality communications. This is why we created our cost-effective Lifetime Essentials suite of communications, which draw upon tried and tested content, but are customised to your brand.
We're committed to helping shape better futures for our clients and their people. We've seen first-hand how good financial education, tools and resources can make all the difference.
To find out more, contact us.
1. Retirement Living Standards, Pensions and Lifetime Savings Association.
2. Proposed benefit and pension rates 2024 to 2025 , Government of United Kingdom. Updated 20th December 2023.
3. Stress, anxiety and hopelessness over personal finances widespread across UK - new mental health survey , Mental Health Foundation, Nov 2022.
4. Terms and conditions apply including signing up for a minimum 12 month subscription to enjoy the 12 months for the price of nine months offer.
5. Terms and conditions apply. Postage, print and email sending expenses would be borne by the client-the offer is to provide a generic promotional postcard (PDF format), HTML email template and an article for inclusion in member newsletters.
