Retirement is the dream of most people – the idea that one day, they’ll be able to spend their time doing the things they want to do, without worrying about work. However, the reality can be quite different. Retirement funds are a big part of planning, but they are only one part of the equation.
For organizations, comprehensive succession planning services can help individuals move easily into this next phase of life. Let’s explore five important aspects to consider.
Finances are the first thing most people consider when planning for retirement. While most people will look into this independently, employees will still benefit from help when navigating the complex topics of retirement savings, Social Security benefits, and healthcare costs. Resources and education help them set up a post-retirement budget and properly assess their income needs and expenses. This is especially important today when inflation is a primary concern for those approaching retirement age.
Healthcare is a major financial concern for retirees. In 2024, Milliman’s Retiree Health Cost Index indicated that a 65-year-old couple in good health can expect to spend $395,000 on healthcare in retirement. Appropriate planning for healthcare expenses is incredibly important, and organizations can play a vital role in supporting their employees. Walking employees through Medicare enrollment, supplemental insurance options and the expected out-of-pocket costs helps make navigating these complex systems a bit easier.
They aren’t called the “Golden Years” for nothing. Learning how to plan for retirement is all about building a fulfilling lifestyle for yourself, without work or family demands. However, without those external demands, some people simply don’t know what to do with themselves – which is why lifestyle planning is so important.
A retiree’s lifestyle will be partially dependent on their personal goals, and partially on their financial reality. Some people may prefer to ease into retirement by moving to a part-time position, while others are more than ready to jump into a life of family, new hobbies, and travel. Either way, encouraging retirees to think about and plan for the change ahead of time helps smooth the way for an easy transition.
The emotional aspect of retirement is often overlooked but is incredibly important. For many employees, leaving the workforce can feel like a loss of identity or purpose. Organizations can help by fostering open conversations about these challenges and offering resources such as counseling or peer support groups.
A smooth transition at work is the responsibility of the employer, not the retiring employee. Of course, they are instrumental in the process and ensuring valuable information isn’t lost, but their primary responsibilities lie with the employer. Employers should take the lead in succession planning, ensuring institutional knowledge is retained and shared effectively before an employee retires.
Retirement marks a new beginning for employees and an opportunity for organizations to shine. Organizations that effectively prioritize comprehensive retirement services send their staff a strong message: their employees are not just valued as employees but as people.
At Career Partners International (CPI), we understand how to support employees and organizations through the retirement process. Our New Horizons Retirement Assessment walks individuals through the process, so they get a comprehensive overview of how to plan for retirement based on their specific situation. Our succession planning services ensure the company also moves through the retirement process smoothly and retains institutional knowledge that might otherwise disappear.
A one-size-fits-all approach is no longer tenable for retirement planning. If you want to build a brighter future for yourself and your employees, get in touch. Together, we’ll create a brighter future for your team.