Overview
Financial challenges, including retirement readiness, remain a pressing concern for workers globally, and the UK is no exception. Our latest research, Retirement Realities: Understanding workplace stress around retirement, reveals that nearly all (96%) workers surveyed worldwide share a long-term aspiration: to achieve financial comfort in retirement.
Lack of confidence in abilities and knowledge has impact at work
However, the journey to this goal can be challenging. Many workers grapple with understanding how much to save for retirement and lack confidence in their saving abilities.
Many workers are also unsure of the income they will require during retirement, with over half of workers in the UK saying they have no idea of how much of their pre-retirement income they’ll need.
This uncertainty has tangible implications for employers. Among workers in the UK who feel stressed about saving enough for retirement, nearly half report that it impacts their concentration at work.
Changing retirement horizons is also linked to stress
Our research shows that 29% of workers over 50 plan to adjust their retirement timeline and most are expecting to retire later than they previously planned. However, delaying retirement is also linked to increased stress, as those planning to retire later report more stressors compared to those whose retirement timelines remain unchanged.
How can employers reduce stress about retirement
Given these findings, our research examines two benefits strategies for employers to consider:
- Framing guidance and support: Clarifying expectations for preparing for and living in retirement. Establish retirement readiness through clear discussions and questions for all employees, regardless of income or location.
- Considering phased retirement: Adapting flexible retirement programmes to accommodate the evolving nature of retirement timelines. Phased retirement is a particularly crucial benefit for workers over 55 in the UK, with 60% considering it a key factor in deciding whether to remain with a company. This highlights the value of supporting phased retirement on the broader business goals of retention.
These insights are important trends to consider. They are informative for employers to understand the support their employees may need when it comes to saving for retirement, and they provide a valuable preview of worker intentions. This valuable insight may have an impact on future work patterns with potential implications for broader talent goals.