13 March 2017
72% of Millennials and 59% of Generation X want their employers to help more with retirement planning.
We have undertaken one of the largest surveys of private sector employees in the UK and of their retirement plans. The research, conducted by MSS on behalf of Chase de Vere, surveyed a cross section of 1,500 private sector employees split across three distinct categories: Generation Y (Millennials aged between 16 and 35), Generation X (aged between 36 and 50) and Baby Boomers (aged 51 to 70)
The results of the survey should act as a wake up call for UK employers, which could be faced with an ageing workforce that cannot afford to retire.
- What is your expectation for when you retire, taking into account all sources of income and savings?
In each category, more people are concerned they won’t have enough money to live adequately in retirement than who are confident that they can live comfortably.
Over half of Generation X is worried about this and, a more imminent problem, so are over one-third of Baby Boomers.
- How confident are you in your knowledge of how a pension works and the rules that surround pensions?
Only 30% of Millennials, 27% of Generation X and 40% of Baby Boomers are confident in their knowledge of pensions. It is hard to get people to be engaged with their pensions if they don’t understand how they work.
- Does your employer offer you access to professional advice or any other form of information to help you make informed choices about your pension and retirement planning?
This shows that relatively few employers offer their employees access to advice or information on pensions and retirement planning, or if they do they are failing to communicate it effectively.
- Do you want your employer to do more to help you make informed choices about your pension and retirement planning?
There is a clear demand from private sector employees for their employers to offer advice and/or information about pensions and retirement planning. This is particularly the case amongst younger workers.
Sean McSweeney, Corporate Advice Manager, Chase de Vere, says:
“This research should set alarm bells ringing amongst employers. Many employees are concerned that they won’t have enough money to live adequately in retirement, aren’t confident in their knowledge of pensions and aren’t getting help from their employers. The majority of Millennial and Generation X employees want their employers to do more and this is also the case amongst a significant number of Baby Boomers, whose retirement plans should, in theory, already be well advanced.
“Employers are ideally placed to help their employees and yet most fail to do so, despite the possible implications for themselves of having an ageing workforce. These include lower productivity, succession planning issues and losing younger talent to competitors that provide more opportunities for advancement.
“We are seeing more forward-thinking employers offering financial education in the workplace services for their employees. This should help ensure that employees are engaged with the Company’s pension scheme. However, too many firms haven’t yet recognised the potential problems being stored up or are burying their heads in the sand and naively hoping they will go away”.