Almost one in five UK workers now believe they will never retire, up from one in seven three years ago, new research has uncovered.
After polling more than 2,000 employees, professional services firm Aon also found 36% expect to continue working past the age of 68, and that just 37% believe they are currently saving enough for their long-term needs.
More than a third of respondents said that they had been directly impacted by COVID-19-related employment changes, and 87% expect a shortfall in retirement income based on their current provision.
“We are experiencing a fundamental shift in the way that people move from the world of work into retirement,” said Ben Roe, senior partner and head of DC at Aon.
“This is no longer a one-off event at a specific age, but increasingly a phased move taking place at ever older ages – and presenting new challenges.”
The survey, conducted with YouGov, was administered to members of defined contribution pension schemes across a wide range of age groups, incomes and industries.
The findings show that just 15% of employees believe their employer offers a very good level of financial well-being support, while 30% said they offer no support, and a further 16% do not know what support, if any, is available.
In addition, 71% of respondents had not set a goal for how much they would need to save before they can fully retire, and only 7% said they had checked to see how their pension investments had been affected by market movements last year.
“Members expect guidance in simple terms, rather than complex modelling,” said Steven Leigh, principal consultant at Aon. “Quite simply, they want to know how much to save to be able to retire on an adequate income.
“It’s therefore crucial for employers to up their game, to offer better support in a more digestible way and to help employees plan for retirement.”
Image credit: iStock
Author: Chris Seekings