Recent changes in legislation and in our own pension schemes make it even more important for BT people to fully understand their own situation and begin to develop a strategy and to plan for their future.
To me, it is the job of an employer to make sure employees know what is available when it comes to pensions and to try and help them feel secure and ready for their retirement.
BT started a Planning for Retirement Course in 2010 run by WEALTH at work. It was set up to help employees make informed decisions about their retirement and all the related financial issues that come with it.
WEALTH at work supports a number of companies, including BT, to provide employees with knowledge and understanding about the options available to them
The main aim of the course is to give employees the knowledge of how to make their pension work for them. The course also encourages attendees to think about their retirement goals and work out what would be achievable within their financial position. Some people would like to spend their retirement cruising round the world, but realistically in order to do that they may need to start putting more into their pension earlier.
There are two courses available; one for employees who are close to retirement and one for employees aged 50 plus who want to start planning for their retirement earlier on. The latter looks to help employees think about what they want from their retirement and how to plan for it and the former concentrates on the immediate realities and financial changes which come with retirement. As well as making sure that people are well informed on their BT Pensions they are also given information on state benefits, the principles of capital investment, tax efficiency and many other related areas.
Between January 2010 and March 2011 Wealth at work delivered a total of 771 'Planning for Retirement' seminars in 48 locations across the UK to which more than 11,000 BT employees attended.
Since starting the programme, we have had positive feedback from employees and it has even led some to completely rethink their retirement plans and to achieve what they didn't think was possible.
At age 51, Melvyn a BT employee from Essex thought it probably wasn't possible for him to retire at such an early age. Melvyn therefore attended the planning for retirement course and found that retirement was actually possible for him. Intrigued, Melvyn arranged a personal one-to-one meeting with WEALTH at work, who provided him with a detailed analysis in a written report. Based on this report and a subsequent meeting, Melvyn realised that retirement was a real option for him, aged just 51.
Since retiring, Melvyn has been on a number of holidays as well as adopting several new hobbies including learning to speak French, website design, and more importantly he has been able to spend and enjoy more quality time with his wife. Melvyn commented: "The help provided by Wealth at Work was crucial in allowing me to understand whether retirement was a reality given my age and financial situation. It is so important to get good advice to help with these important decisions."
Investing for the future is always going to be difficult, especially in our current economic climate, But Melvyn shows the difference that can be made by helping employees in understanding the principles of personal finance. Support can also help them plan their finances to suit their retirement rather than feeling they are heading into the unknown.
My key message is start planning early. I think it is really important that employers recognise, as we have recognised the importance of providing employees with the tools to understand their financial situation. Schemes such as the one we offer through WEALTH at work provide all the information for employees to tailor their retirement to suit them and should hopefully mean they can head into their life after work with confidence and look forward to the golden years to come.
Dennis Gissing (pictured), head of the diversity practice at BT
