47% of staff do not know how to plan for retirement

EXCLUSIVE: 44% of employers support staff at retirementNearly half (47%) of employees do not have the knowledge to plan for their retirement, according to new research from Aviva.

The study found that 28% feel secure regarding how to manage their pension and 27% are confident they know what a good amount to have in their pension is for someone their age.

Women (21%) are almost twice as likely as men (12%) to feel behind with preparing and saving for retirement, and they (34%) are also more than twice as likely as men (14%) to not know how to manage their pension in the run up to retirement.

In addition, 52% said they know how much they need to save for retirement, dropping sharply from 61% in February 2020. More than two in five (42%) admit they have not even started thinking about retirement yet, which includes 39% of Generation X staff aged 40-54.

As a result of this, nearly three in four Generation X employees (74%) feel like they will have to work much longer until they retire, rising to 79% of Generation Y workers aged 25 to 39.

Nearly three in five (59%) want pension planning support at work to help them identify how much they need to pay into their pension for retirement. Almost one in four (23%) adults want support on how to manage their pension as they approach retirement, while 20% would like more assistance on what type of pensions there are.

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Mary Harper, managing director of Aviva Financial Advice, commented that whether people are working longer out of choice or necessity, many require greater help from their employers to help them manage their finances ahead of retirement.

“It’s important people have sufficient financial knowledge to make the right decisions for them at the right time. Our research shows that employers have a key role to play in filling the pensions preparedness vacuum. Access to a combination of information, guidance and advice via the workplace can help people make the most of their money for the long-term,” she said.