More than half (52%) of UK respondents are worried about their financial future and the ability to retire with a sufficient income, according to research by global professional services firm Towers Watson.
The third part of its Global workforce study, a survey of 32,000 employees worldwide, including 2,600 UK workers, also found that 60% of UK respondents said that retirement security has become a higher priority over the past three years, rising to 76% for respondents older than 40.
The research also found that 47% of UK respondents said they anticipate they will retire later than they previously thought, while 9% said they believe they will retire earlier than expected. In the US, 42% said they anticipate they will retire later than they previously thought, while 38% said the same in Germany and 36% in France.
The research also found:
- 38% of UK respondents are confident they will have sufficient financial resources to live comfortably for 15 years into their retirement and only 25% said the same for 25 years.
- 26% of UK respondents said that their employer’s retirement benefits do not meet their needs.
- 20% of UK respondents said employers do not do a good job of explaining their benefits programmes.
Tess Wishart, pensions and retirement communications lead at Towers Watson, said: “In our experience, we have never seen such an awareness and concern for retirement provisions from the workforce. People are clearly worried and, by the same token, any government initiative that impacts on pay can be very emotive.
“Employees are becoming increasingly concerned about their future financial security, so effective communication with them is vital if they are to feel confident that they are doing the right things to achieve a good outcome in retirement.
“It is very important for employers that their employees grasp the value of the total reward package and auto-enrolment means more organisations will be investing in retirement provisions for their employees.”