interactive investor comments on the initiative.
A new online “Midlife MOT” has been launched by the Department for Work and Pensions (DWP) today to help older workers plan for retirement.
Commenting, Alice Guy, Head of Pensions and Savings, interactive investor, says: “The Midlife MOT is a great initiative that will help older workers get a handle on their finances and take positive steps towards a more comfortable retirement.
“Taking stock of your finances is a good idea at any age, but it is especially important for older workers approaching retirement. Your 40s, 50s, and 60s are often the last chance to pay money into your pension and make a big difference to your wealth in retirement.
“As it stands, many older workers will mainly be relying on the state pension and only have a small private pension as many smaller employers didn’t offer auto-enrolment pensions before 2012, when auto-enrolment rules came in for employers.
“It’s especially positive to see the MOT focusing on helping older workers retrain. Gone are the days of a job for life and many workers have several different careers within their working life.
“The elephant in the room is that older workers often face discrimination in the workplace and may find it harder to find work once they reach their 60s. Some employers may also be less flexible when it comes to employing older workers, who may need to work part time to juggle caring responsibilities.
“Although the Midlife MOT is a positive step for many workers, we also need to recognise that not everyone is healthy and strong enough to carry on working into their late 60s, especially with physical jobs, and life circumstances can change. For many people, the gap between retirement, often due to ill health or caring responsibilities, and the state pension presents a huge financial challenge. For this group, often surviving on a minimum income, a Midlife MOT may not be enough to make a significant difference to their living standards.”
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