The recent MoneyFit.me survey of BusinessDesk readers found that out of 165 responding employers, 144 have some form of support available for their staff to prepare for retirement.

I was pleased to see, with 18.8% of responses, that the main form of support provided by employers was to continue KiwiSaver contributions beyond the compulsory employer contribution age of 65.

Although the benefits could be communicated more effectively to the workforce, this is encouraging and shows that employers are willing to support their active workforce in growing their retirement funds.

It also reflects the reality that Kiwis are working after 65 into what is often referred to as ‘retirement’ age, which is true for many.

Younger employees are watching

Employers may think that policies and employee benefits for retirement only impact the senior employees in the workforce.

I think this is far from the truth.

Younger employees are watching – they see how you treat their senior team and their leaders, and will take stock when planning for their own developing careers.

It’s not only about supporting an individual team member into retirement, but also retaining institutional knowledge and leadership to support your more junior staff.

Many organisations I have spoken to begin with the mindset that retiring employees are on their way out, so it feels a waste to expend money on them.

I challenge anyone with this perspective that it is short-sighted. Think of retirement preparedness for your staff as a long-term play and overall reputation piece.

When staff have positive experiences with an employer, they share those positive experiences, and if they have the flip side, they share that too.

Retain institutional knowledge

The survey found the second most popular retirement preparedness support was phased retirement or part-time transitions at 16.4%

Phased retirement is a win-win for both employers and employees.

Employees can wind down their working life feeling valued, matching their capacity, desire and willingness to work until they no longer want to.

The flexibility for employees allows employers to maintain strong relationships with those who possess the most in-depth institutional knowledge of the organisation and its business-as-usual workflows.

Again, this further supports more junior staff and fosters business positivity by building brand credibility and loyalty.

Build brand credibility

It was discouraging to note that the third-highest response, at 12.7%, was that employers didn’t see value in providing any additional retirement support.

I think this is a missed opportunity for employers.

Yes, there is a cost involved, but we should reframe the view to: what’s the value of supporting staff to retire well?

It’s a narrative that can easily be flipped to look at the equation of cost measured against value.

Just like we warn clients in financial coaching, there’s a cost to doing nothing in this space as well.

Higher turnover from employees who don’t have a strong loyalty to the organisation, dips in productivity when staff retire without retaining their institutional knowledge, and a weakened brand image from the employees’ point of view, and even potentially other stakeholders looking in.

I also emphasise that it doesn’t have to be a high-cost exercise to have an impact and be a value-add for staff.

Simply providing opt-in workshops for staff in the financial knowledge and retirement planning space can be a low-cost, high-impact approach for attendees – as an example.

Build relationships that extend beyond transactional remuneration; make your staff feel valued and cared for, recognising their overall wellbeing and life trajectory.

Your organisation – and wider stakeholders – are taking notice.