Almost half (47%) of global respondents start to save for retirement because of a life stage event, according to research by Aegon.
Its Successful retirement: healthy ageing and financial security report, which surveyed 14,400 employees and 1,600 retired individuals across 15 countries, also found that 32% of global respondents who expect to work to some extent in retirement cite general anxieties about their retirement income and whether their savings will last as the reason for this, and 26% identify concerns that their retirement benefits will be less than expected as the reason.
The research also found:
- 41% of global respondents start to save for retirement for employment-related reasons. This includes an employer starting to pay into a retirement plan (17%), being automatically enrolled into an employer’s retirement plan (15%), and the employer offering matching contributions (12%).
- 31% of global respondents start to save for retirement after turning a certain age. Other life stage events that trigger saving for retirement include starting a family (16%), and getting married (10%).
- 49% of global respondents who consider themselves to be in excellent health are very confident they will have a comfortable retirement, compared to 13% who consider themselves to be in fair health, and 7% of respondents in poor health.
- 41% of global respondents are offered access to a workplace retirement savings plan where their employer makes a contribution, and 26% have access to a workplace retirement savings plan where their employer does not make a contribution.
- 72% of global respondents who are offered the ability to view and manage retirement savings digitally find this to be very or extremely helpful, and 12% are offered this facility by their employer.
- 37% of global respondents would be interested in receiving financial incentives for focusing on their health and wellness.
- More than half (57%) of global respondents envision continuing some form of work into retirement.
Steven Cameron (pictured), pensions director at Aegon, said: “Finding ways to develop good savings habits and to maintain a healthy lifestyle from an early age are key factors for a successful retirement. Those who adopt multiple healthy activities are also more likely to be financially prepared for retirement than those who don’t.
“Retirement planning has traditionally focused very heavily on finances, without sufficient consideration of health. A successful retirement requires maintaining good health and being financially secure. However, many people are failing to prepare in ways that can increase their likelihood of success.
“Health has the potential to have major impacts on people’s retirement plans. For example, when taking the decision about when to stop working and enter retirement the timing is often dictated by health factors. And while we all aspire to a long and healthy retirement, this may involve saving more to make the most of these years.”