More than two-fifths (43%) of respondents say their employees are concerned that they will experience a shortfall of money in retirement, according to research by Employee Benefits and Nest.
The Employee Benefits/Nest research, which surveyed 254 employers in September 2017, reported that employees are concerned they do not have all the tools for retirement. Just over two fifths (41%) of respondents say their staff are worried about how financially secure they will be when they retire. In addition, just over one-third (36%) say their staff are concerned they have not started financially planning for their retirement.
More than a third (39%) of respondents say their employees are uncertain about what to do with their pensions, while a further two-fifths (41%) cite concerns abut how to make the best best decisions when it comes to choosing how to take their pension savings, for example, whether to opt for an annuity, drawdown or lump sum pensions.
It is therefore encouraging that respondents appear determined to support their staff and equip them with the knowledge they feel they are missing.More than three-quarters (85%) of respondents are willing to put pressure on their pension providers to offer employees better education and support, and a further 83% will put pressure on pension advisers to do the same.
This is an ongoing priority for respondents with 57% saying 1-5% of their workforce will retire within the next 12 months and 37% and 31% that 1-5% and 6-10% of their workforce respectively will do so within the next five years.
The retirement concerns affecting respondents' workforces (above text)
Sample: All respondents (155)
Lack of money in retirement 43%
Concerns about their financial security in retirement 41%
Uncertainty about how to make the best decisions (annuity, drawdown, lump sum) 41%
Uncertainty about what to do with their pension savings 39%
Lack of a financial plan 36%
Concern about the cost of advice 25%
Do not know 24%
Uncertainty about how to save for their retirement 23%
Lack of knowledge of where to go for help/advice 21%
The end of their career 20%
The ability to provide for children and grandchildren 16%
Lack of access to guidance and support 16%
Deteriorating health 16%
Lack of purpose 12%
Lack of social interaction with their peers 10%
Other 3%
How respondents believe the provision of at-retirement support is likely to evolve in the future (text above)
Sample: All respondents (144)
More respondents will put pressure on their pension providers to help offer employees as much education and support as possible
Agree 85% Disagree 13% Not applicable 3%
More respondents will put pressure on their pension advisers to help offer employees as much education and support as possible
Agree 83% Disagree 12% Not applicable 5%
More respondents will want or need to offer this type of support
Agree 76% Disagree 18% Not applicable 6%
It will take time for respondents to boost their efforts given the relatively young demographics of their workforce
Agree 67% Disagree 20% Not applicable 13%
The sophistication of respondents’ approaches is dependent on at-retirement provider development and support
Agree 65% Disagree 24% Not applicable 11%
The majority of respondents will go above and beyond basic legal requirements
Agree 29% Disagree 70% Not applicable 1%
The proportion of employees in respondents' organisations nearing retirement in the next 12 months
Sample: All respondents (154) (above text)
None 25%
1-5% 57%
6-10% 11%
11-15% 3%
16-20% 3%
21-30% 1%
The proportion of employees in respondents' organisations nearing retirement in the next five years
Sample: All respondents (154) (above text)
None 12%
1-5% 37%
6-10% 31%
11-15% 11%
16-20% 6%
21-30% 3%
The proportion of employees in respondents' organisations nearing retirement in the next 10 years
Sample: All respondents (151) (above text)
None 5%
1-5% 22%
6-10% 28%
11-15% 22%
16-20% 12%
21-30% 7%
31-40% 3%
Over 40% 2%