31 August 2023
Research carried out by Aviva investigates employer and employee attitudes to the workplace, finances, wellbeing, and planning for retirement.
Below are some of the key findings from the research on planning for retirement:
- 44% of 55 to 64-year-olds plan to move into ‘semi-retirement’ before they reach 65, allowing them to draw on their pension savings while continuing to work part-time
- 86% of employers surveyed feel responsible for ensuring their employees save for a comfortable retirement, but 11% do not feel at all responsible
- 50% of employees are confident in planning for a financially comfortable retirement, but 22% are unconfident
- those employees closest to retirement age are more likely to have no idea whether they will be able to retire comfortably compared to younger workers
- 72% of employees said the cost-of-living crisis has made them feel more anxious about their finances
- 79% of employees would like more support from their employer about planning for a financially comfortable retirement
- 41% of employees would like more information on how to build up a pension pot, and 45% would like more information on how to make a pension last throughout retirement
- 20% of employees said their employer provides enough support already. 20% employers said they only provide the minimum retirement planning information which is required
- 31% of employers do not provide employees with any information about tracking down their pensions
- 62% of employees who have more than one pension have not consolidated them, and a further 18% have not even considered it. Employees are most likely to check their pension once a year (17%), never (16%), or once a month (11%). 30% of employees do not know how many pensions they have
- 74% of employees think it's important to have climate-friendly policies in the workplace.
Emma Douglas, Director of Workplace Savings and Retirement, said:
‘‘Financial education is key to supporting employees at this uncertain time. Employers have an important role to play in creating a culture which encourages their people to talk about their money worries and supports their general wellbeing. Offering financial seminars, giving access to Employee Assistance Programmes (EAPs), and providing crucial support for retirement planning are all important.
Pension freedom legislation has given people more flexibility and choice when it comes to choosing how to use their savings at retirement. However, it is desperately concerning that many savers are overwhelmed by the choices they face at retirement but are reluctant to pay for independent financial advice and are sleepwalking into retirement. The pensions industry and government must work together to support today’s retirees in making the right choices for what might be long and, hopefully, financially comfortable retirements.
Consolidating pensions should not be left to when people are approaching retirement. Consolidating pensions when you start a new job is a great way of making sure you keep track of them, will help to maximise those savings for longer, and contributes to better retirement planning.’’
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