Standard Life has introduced significant enhancements to its Retirement Income Tool, including a new feature that enables scheme members to model how part-time work or career breaks may affect their future retirement income.
The upgraded tool is initially available on the award-winning* Standard Life App and sits alongside a wide range of other features, offering practical guidance and financial wellbeing support, to help pension members to make informed financial decisions.
People move to part-time work for many reasons, from caring responsibilities and long‑term health conditions to navigating other life challenges. This can be hugely beneficial, allowing them to stay in employment and continue to earn and save. However, it can also have a significant impact on future retirement income through smaller pension contributions. Half (50%) of UK adults who have experienced a major life event say it affected their ability to contribute to their pension**.
The new feature on the Retirement Income Tool lets members enter their current working pattern, map out any planned changes to their hours, and specify how long these changes will last. It then compares projected retirement income before and after the adjustment, reflecting individual circumstances and pension contribution levels.
They can also factor in the State Pension to projections, whether they expect a full or reduced amount, giving valuable insight to support long‑term financial planning.
Analysis by the Standard Life Centre for the Future of Retirement found that women are disproportionately impacted by life events, such as motherhood, divorce, childcare and menopause, which can affect working hours and reduce their ability to save. By mid-life, where care responsibilities fall to one in four women, men are paying 50% more per month (£80) into their pension than women***.
The enhanced Retirement Income Tool supports this by showing how changes to working patterns can influence future retirement income, highlighting practical steps people can take to help offset any potential reduction.
For those looking to take action, the Standard Life App offers full transactional capability, allowing its customers to manage their pensions and savings whenever and wherever they need to.
“Most people consider taking a career break or reducing hours at some point during their working life. This can be beneficial to allow them to balance work with personal commitments or ill health. The enhanced Retirement Income Tool helps members understand what these choices could mean for their income in retirement, and shows the practical steps they can take to stay on track for their long-term goals.
“We want to empower members to engage more with their financial futures, and enhancing our digital tools is a key part of this commitment. Too many people fall behind on their pension savings during a career break and when reducing working hours. Understanding what’s needed to bridge any potential shortfall is the crucial first step towards achieving their retirement goals.”
Emma Furlonger, Interim Managing Director for Workplace and Retail Intermediary at Standard Life
