Retirement Readiness: 5 Steps to Helping Employees Understand Their Retirement Income Needs

Retirement planning often gets pushed to the back burner. When you’re dealing with a timeline of years and decades, the urgency of today has a habit of drowning out the quiet demands of tomorrow. However, retirement readiness isn’t just about the future. Employees who feel confident about their financial future are more engaged, productive, and loyal — a win for now and tomorrow. 

Here are five steps to help your employees move from uncertainty to confidence as they plan for retirement.

1. Take stock of current retirement savings

For many employees, work demands often take priority over long-term planning. It’s common for people to lose track of their retirement savings—unsure whether they’re contributing enough or on track to retire comfortably. That uncertainty can lead to stress and inaction. 

Encouraging employees to conduct an annual retirement savings check-up can make a big difference. Reviewing account balances, contribution rates, and any available employer match helps them understand where they stand—and what steps they may still need to take. 

Support your team by offering easy-to-use templates or worksheets, hosting dedicated check-in days, and fostering a workplace culture that normalizes financial conversations. These small efforts can improve clarity, confidence, and long-term financial security. 

Employer Tip: Promote annual retirement reviews. Encourage employees to consolidate old accounts, update beneficiaries, and review their contribution levels—especially as they approach age-based catch-up eligibility.

2. Estimate future income needs

Once employees understand what they’ve saved, the next step is helping them estimate what they’ll need. Many assume that simply “getting by” will be enough without factoring in rising healthcare costs, inflation, or the lifestyle they envision in retirement. 

A helpful exercise is building a basic retirement budget, which includes current spending, future housing plans, healthcare needs, and personal goals like travel or hobbies. This process often reveals two important insights: most employees won’t need to replace 100% of their income, but they will need to supplement Social Security with a reliable income stream from their savings. 

Having a clear target empowers employees to engage more actively in retirement planning. Many underestimate how much they’ll need—or overestimate how far Social Security will go. Providing simple tools and education around income replacement rates (typically 70–90% of pre-retirement income) helps set realistic expectations and encourages proactive planning. 

Employer Tip: Offer access to calculators and goal-setting tools that help employees estimate future income needs based on lifestyle, inflation, and healthcare assumptions.

3. Understand social security & pension benefits

Many employees feel overwhelmed by the decision of when to claim Social Security. Should they start at 62? Wait until full retirement age? Delay for a larger benefit? The range of advice can be confusing — and that uncertainty often leads to stress or inaction. 

Employers can play a key role by offering guidance that helps employees navigate these decisions. Hosting financial wellness sessions, sharing resources that explain the implications of claiming early versus later, and encouraging employees to access their Social Security statements are simple but powerful steps. For those with pensions, reviewing benefit statements alongside Social Security estimates can offer a fuller picture of their future income. 

Demystifying these benefits helps employees make informed decisions — and often sparks conversations about retirement timing and financial goals. 

Employer Tip: Host workshops or webinars that explain Social Security basics, including claiming strategies, spousal benefits, and how pensions (if offered) integrate into the broader income picture.

4. Adjust Contributions Based on Goals

Once employees know their retirement goals and income sources, they’re more likely to take meaningful action. That might mean increasing contribution rates, taking advantage of catch-up provisions for those over 50, or adjusting their investment mix to better align with long-term needs. 

These changes aren’t just financial—they reflect a shift in mindset. When employees understand what they’re working toward, they’re more motivated to make progress, especially when they see how small adjustments can add up over time. 

Employers can support this momentum by making it easy to update contribution levels and encouraging regular portfolio allocation reviews. These simple nudges can empower employees to take control of their financial future. 

Employer Tip: Highlight tools that illustrate the impact of contribution increases. Consider auto-escalation features or nudges for age-based savings milestones. Encourage employees to revisit their asset allocation every few years or as retirement approaches.

5. Seek professional guidance

One of the most impactful steps employers can take is ensuring employees know they don’t have to figure everything out independently. Offering access to financial guidance through 1-on-1 office hours, virtual consultations, or small-group sessions can turn confusion into clarity.

Not everyone will raise their hand and ask for help, but many will engage when support is offered proactively in a safe, judgment-free setting. Even short conversations with a knowledgeable advisor can make a lasting difference in how employees approach retirement planning. 

Employer Tip: Make it easy for employees to access support. Offer webinars, phone consultations, or in-person office hours. Normalize financial conversations throughout all career stages—not just for those nearing retirement. 

Empowering retirement confidence across your workforce
This support isn’t reserved for one individual—it’s relevant for many. Many employees work hard, save diligently, and hope everything will fall into place. But they can move from uncertainty to empowerment with the right tools, clear information, and a culture that encourages financial wellness. 

By taking these five steps and fostering a workplace culture of retirement readiness, you offer more than just education — you give your team the confidence to take action and build a future aligned with their goals. 

This content is for informational and educational purposes only and should not be construed as individualized advice or a recommendation for any specific product, strategy, or course of action. Brighton Jones, its affiliates, and employees do not provide personalized investment, financial, tax, or legal advice through this communication. This material is not intended to, and does not, create a fiduciary relationship under ERISA or any other applicable law. For individualized advice tailored to your specific circumstances, please consult with your adviser.