Long-Served, Under-Celebrated: Why Non-Profits Must Do Better on Staff Retirement

Today, I want to shine a light on a topic that often remains in the shadows within the non-profit sector: the retirement planning for our long-serving employees.

Imagine dedicating over two decades to a cause you believe in, only to face a retirement that feels like an afterthought. This is the reality for countless long-serving staff in non-profit organizations, their dedication and commitment often met with a whisper instead of a cheer.

While conversations about re-employing aged workers gain traction, a crucial topic remains unspoken in the non-profit sector: retirement planning for long-service staff. Having witnessed a mishandled retirement exercise firsthand, I felt compelled to address this glaring gap in our approach.

In Singapore, 70% of employees feel financially insecure about retirement (RHS 2022/23). This reality is particularly harsh for non-profit veterans.

Many, despite dedicating over 10, 20 and 30 years to serving the community, are left with inadequate CPF savings and vulnerable to financial hardship as we are all aware of Social Service Agency (SSA) employees’ salary structure (another important topic to look into). This isn't just a missed opportunity for recognition; it's a failure to ensure a dignified transition for these dedicated individuals.

The Non-Profit Dilemma: Public Money, Private Lives

As non-profit organizations, we operate with a unique constraint – we are stewards of public money. This responsibility brings with it a need for transparency and judicious spending. However, does this mean that the welfare of our long-serving staff should take a backseat? Certainly not. The challenge lies in balancing fiscal responsibility with the moral imperative to support our employees’ transition into retirement.

A Missed Opportunity by HR and the Board

As mentioned, having witnessed a flawed retirement exercise for senior staff with over 20 years of service, I was struck by the stark reality. This is a concerning trend. HR departments and organizational boards are often ill-equipped to handle the nuances of retirement planning in our sector.

It’s not just a missed opportunity for recognition but a glaring oversight in ensuring a dignified and secure transition for employees who have given their best years to the cause.

The Human Cost:

Inadequate retirement planning isn't just about numbers; it's about people. Financial insecurity leads to anxiety, stress, and health problems. It forces veterans to delay retirement or re-enter the workforce at a disadvantage, impacting their well-being and quality of life.

Furthermore, a lack of proper recognition and appreciation can leave these dedicated individuals feeling undervalued and disillusioned. This can damage morale, impacting the entire non-profit workforce and the community it serves.

Reemployment vs. Retirement Planning

While there’s a growing focus on reemploying aged workers, we have yet to fully embrace the importance of a comprehensive retirement plan. It’s not just about keeping them in the workforce longer; it's about ensuring they have a secure and dignified exit when the time comes.

What can we do?

A Call for Action: Building a Better Future for Our Unsung Heroes.

It's time to acknowledge the invaluable contributions of our non-profit heroes and build a better future for their golden years. Here are just some steps we can take:

Implement Comprehensive Retirement Plans:

• Financial benefits: Develop sustainable plans that offer adequate financial security through pension contributions, retirement bonuses, or other mechanisms.
• Healthcare coverage: Ensure access to affordable healthcare options for retirees.
• Support services: Provide access to financial planning guidance, legal assistance, and mental health support.

Invest in HR Expertise:

• Equip HR personnel with the knowledge and skills to handle the specific needs of long-serving staff, including retirement planning, legal requirements, and employee engagement best practices.

Promote Transparency and Accountability:

• Boards and management must be transparent about retirement policies and openly communicate with staff.
• Regular reviews and evaluations of processes and policies are crucial.

Recognise and Celebrate Contributions:

• Public recognition programs, awards, and mentorship opportunities can show appreciation for dedication and service.

Solutions to Consider?

We need a comprehensive approach to address this issue:

• Benchmarking: Compare retirement packages against best practices in both private and public sectors.
• Financial planning support: Provide staff with access to financial advisors and retirement planning tools.
• Board and HR training: Equip leadership with the knowledge and resources to develop and implement effective retirement plans.
• Public-private partnerships (CSR, ESG approach): Explore innovative funding models, such as matching grants, to bolster retirement funds for non-profit staff.

It’s easier said than done isn’t it? What I do know is that alone we can do so little; together we can do so much.

So, I urge all non-profit leaders, board members and HR professionals to revisit their retirement policies. It’s time to openly discuss and address this vital aspect of employee welfare. Let's work towards a future where every long-serving employee exits with the respect and security they deserve.

"Retirement planning is not just a financial strategy; it's a testament to an individual's life-long contribution."

Let's make it count.