Financial security is a key issue for employees with just under one half (43%) concerned they will not have enough money in retirement, according to research by Employee Benefits and Nest.
The uncertainty over financial stability at retirement ranked highly with respondents, and the Employee Benefits/Nest Research, which surveyed 254 employee respondents in September 2017, also found that over two-fifths (41%) of respondents believe uncertainty about how to make the best decisions when accessing pension benefits is an area of concern for their employees.
While this continues to top the list of retirement concerns affecting respondents’ workforces, it has fallen steadily since 2014, when 60% of respondents cited uncertainty about how to make the best decisions as a key concern.
The percentage of respondents that say employee uncertainty about what to do with their pension savings has also fallen steadily. This year, more than one-third (39%) highlighted it as a concern among their workforce, compared to 41% in 2016 and 52% in 2014.
Just over one-fifth (23%) see uncertainty about how to save for retirement as a cause for concern among staff. The percentage of respondents that see this as an issue among their employees has remained relatively steady over the years, being cited by 20% in 2016 and 26% in 2015. It may be that employers' provision of communication and education about pension saving post auto-enrolment and since the pension flexibilities came in to effect in 2015 have helped to increase employees' knowledge of the options available to them.
Despite this, 41% highlighted an issue around the level of concern about financial security in retirement, although this is an improvement on previous years. In 2016, for example, 53% cited this as a worry, while 52% did so in 2014.
One-quarter of respondents (25%) also indicated concern over the cost of financial advice.
What concerns respondents' staff the most regarding retirement
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 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 or 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 peers 10%
Uncertainty about their organisation's ability to offer access to their pension funds through drawdown 6%
Other 3%
