Research by Baring Asset Management has found that almost one in ten people – or the equivalent of 3.1 million people – has no plan to retire from working.
Additionally, the report which surveyed 1,548 non-retired British adults revealed:
- The average age people expect to retire is 62 (down from 63 in 2014 and 64 in 2013)
- Almost a third (31%) have no formal pension
Ron Aldridge, Head of EMEA Wholesale Distribution at Baring Asset Management said: “It is clear that large numbers of people still do not have effective pensions in place”, and added “the pressures on people to save for the future and plan properly are growing not shrinking”, in reference to automatic auto-enrolment that will apply to all employers by 2018.
Employees want increased workplace support on pensions
Worryingly, over half of 18-24 year olds said they don’t have a pension. While there is a big difference between men and women of all ages – 23% and 38% respectively, who said they don’t have a formal pension whatsoever.
More than one in ten (13%) employees want support from their employer when it comes to retirement planning assistance, while 14% said it was the employer’s responsibility to ensure their workforce understands how pension fund asset allocation works.
The survey found that a higher percentage of 18-24 year olds looked to their employer for support, compared to only 8% of those aged between 55 and 64.
Give your employees the advice they deserve
It’s clear from the research that employees look to their employers for help when it comes to their retirement planning, so you must ensure your business is in a position to offer adequate levels of assistance.
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