More than half (58%) of global respondents feel that phased retirement is a very or extremely important occupational benefit, according to research by the Aegon Centre for Longevity and Retirement (ACLR) and the Transamerica Centre for Retirement Studies.
The A retirement wake-up call: the Aegon retirement readiness survey 2016 report, which surveyed 14,400 employees and 1,600 fully retired people across 15 countries, also found that globally, 39% of employees cite employment-related factors as prompts to start saving for retirement. For 16%, this is their employer paying into a retirement plan, 14% start saving once they are automatically enrolled into their employer’s plan, and 10% begin saving for retirement when they have got their first job.
The research also found:
- 65% of employee respondents find the idea of automatic enrolment based on a contribution level of 6% of annual salary to be very or somewhat appealing.
- 38% of employee respondents do not have a retirement plan.
- 41% of employee respondents are offered a retirement plan with employer contributions.
- 32% of part-time employees are offered a retirement plan with employer contributions compared to 44% of full-time employees.
- 28% of employee respondents are offered phased retirement as an option.
- 38% of employee respondents are ‘habitual savers’ who are always saving for retirement and 23% are ‘occasional savers’ who save for retirement from time to time.
- Around a quarter (26%) of respondents believe they are on track to achieving their retirement income needs.
- Almost half (47%) of respondents are prompted to start saving for retirement following major lifestyle changes such as starting a family (16%) or turning a certain age (32%).
Catherine Collinson, president at the Transamerica Centre for Retirement Studies and executive director at Aegon Centre for Longevity and Retirement, said: “People expect to live for 20 years in retirement but the reality is that they may live even longer. Increases in longevity may require individuals needing to work longer in order to adequately fund retirement. Working longer can also promote active living and healthy ageing.”