Retirement preparedness

Important information: This information is for scheme sponsors’, trustees’, their advisers’, and consultants’ use only and should not be relied upon by individual investors. 

With most workers focused on saving for retirement as a long-term financial goal, benefits that support financial security in retirement could be an important tool to attract and retain employees in a tight talent market.  

Retirement savings plans are one of the most valued parts of an employee benefits package, and one of the top features that are important to an employee to stay in a job for workers in the UK.

^{Question: Please indicate whether the feature is important to you for staying at a job.
Source: The Fidelity Global Sentiment Survey 2023}

However, employers should consider evaluating if the strength of their retirement savings program contributes to employee confidence in achieving the long-term financial goal of being comfortable in retirement.

Confidence in achieving this long-term goal of being financially comfortable in retirement remains elusive for a third of workers around the world, and varies significantly across regions.

^{Question: How confident are you at being able to achieve the long-term financial goal of being comfortable in retirement?
Source: The Fidelity Global Sentiment Survey 2023}

While effective, increasing pay isn’t the only lever to pull to boost confidence in retirement preparedness. While higher incomes may partially enhance confidence levels, lengthening planning horizons for retirement planning has comparable results. In other words, the further ahead workers are looking at their finances, the more confident they are likely to be in achieving their long-term financial goals, highlighting a potential opportunity with retirement guidance and planning support.
 
Longer planning horizons also help boost confidence of global workers in achieving a financially secure retirement

^{Question: How confident are you at being able to achieve the long-term financial goal of being comfortable in retirement?
Question: How far in advance do you plan your finances?
Source: The Fidelity Global Sentiment Survey 2023}

Questions for employers to consider to strengthen retirement readiness of your workers
 

1. How are you boosting employee’s confidence in achieving their retirement goals? Are you leveraging member guidance and support available from your benefits providers?
2. How are you preparing for the changing landscape of retirement? Would a phased retirement program be appropriate for your firm? What other ways are you using flexibility to retain experienced talent?