By Jonathan Watts-Lay, Director, WEALTH at work
WEALTH at work’s latest survey results reveal that the majority (80%) of employers believe their employees are not saving enough for retirement.
This coincides with research by the Financial Conduct Authority which indicates that planning for retirement is often a low priority.
It revealed that relatively few (16%) of 25 to 34-year-olds are saving for longer-term objectives such as providing a retirement income. A similar picture was painted for 35 to 44-year-olds, with one third (33%) neglecting to consider how much they should be paying into their defined contribution (DC) pension each year to maintain a reasonable standard of living in retirement.
It also found that under half (48%) of 45 to 54-year-olds hadn’t reviewed their DC pension in the last 12 months to see how much their pot is worth, making it difficult for many to understand what income they could expect their pension savings to produce.
These findings are a clear indication that more support is needed to help employees understand the importance of planning for retirement – and not only in the years leading up to retirement but from early on in an employee’s career.
After all, a well thought out plan can help employees understand what needs to be done now to produce an adequate retirement income, as well as what the key considerations are at-retirement to make the most of their hard-earned savings.
Employers can play a fundamental role in helping employees plan for a secure future by providing access to a breadth of services, such as financial education, guidance and advice. And delivering this doesn’t have to be complex or ttime-consuming as there are specialist workplace providers who can help!