Employers that are increasing focus on the financial wellbeing of their workforce tend to assume that it’s only younger workers who are struggling.

The strategies implemented therefore often favour that demographic with app-based offerings, a focus on getting onto the property ladder and education about products like Lifetime ISAs. But what about older workers who are also struggling financially?

Recent research from LCP shows that 17% of workers age 55 or older are worried about their financial health, and alarmingly, 14% are not saving for their retirement. This age group may also face a bigger social stigma around poor financial wellbeing – as there is an expectation that they should have it “figured out” by their age.

This older cohort of employees is also likely to be worried that they have less time to recover from past financial mistakes or market fluctuations, like we have seen during the Covid-19 pandemic. They may feel that they have less time to recover or prepare for the future than their younger counterparts.

What can employers do to support these employees? Here are three suggestions to consider:

1. Don’t assume all of your workers want to retire at the state retirement age: 
   
   The expectation – explicit or implied – that your workers should retire as soon as they reach state pension age can pressure those who may need to keep working for financial reasons. Ageism is a form of discrimination, and as life expectancy increases, we are likely to see more and more people continuing to work after state retirement age. ONS labour market statistics show this is already happening – with 11.8% of over 65s employed in January–March 2020, compared with only 5.3% 20 years ago.
   
   While some employees may be essentially ‘forced’ to work past the official retirement age for financial reasons, this is not all doom and gloom. Keeping the mind and body active certainly has positive health impacts. In addition, some benefit and taxation changes may make working after the state retirement age more appealing – such as no longer having to pay national insurance.
2. One-to-one financial health checks: 
   
   Whether this is sign-posting them to self-help checklists, independent advisers, or hosting a drop-in clinic where they can talk to someone during work hours, older workers have a stronger preference to one-on-one support compared to younger workers.
   
   By taking away the social pressure, a one-on-one environment allows employees to get a sense check of where they are financially, without experiencing the fear of social stigma. It may be that their worries are unfounded, or it could provide a realistic starting point for them to improve financial habits and behaviours.
3. Make your financial wellbeing strategy inclusive: 
   
   The language of financial education is often about small steps over a long period. This can be concerning for those employees who feel that they may not have a long time to work with.
   
   It’s also important to show that it’s never too late to start getting your finances in order. If a 55-year old on a £28,000 salary with no pension savings starts contributing via auto-enrolment, they could still end up with a pension pot of around £29,000 to support themselves when they retire. While that may not get them the retirement lifestyle that they had dreamed of, it could provide them with an extra £1,500 income each year to add to their State Pension.
   
   You should consider having multiple financial wellbeing offerings to match the needs of different employees – for instance older-age employees are more likely to benefit from retirement planning, education about past defined benefit pensions, and health and long-term care costs. You can also highlight the government schemes that are available, specifically for those who are older and struggling financially.
   
   Products aimed at some groups – such as a Lifetime ISA, which offers a 25% boost from the government – are not available for older employees. Employers could consider alternatives for them, such as a workplace saving scheme, where the employer provides 25% boost for older employees.

Ultimately, the principles for supporting older workers who are struggling financially are those that you should use regardless of age: avoid making assumptions, but instead look at your data; build a financial wellbeing strategy that caters to differing needs, and finally, be prepared to adapt as you go.