Mid-career employees worried about not saving enough for retirement

07 Jan 2019

New research highlights the benefits of offering access to financial advice at work, with many employees concerned about managing their money and saving for retirement.

A survey of over 1,000 full-time UK employees by professional services firm Aon found that people in the middle of their working lives are the most likely to struggle when it comes to saving enough for retirement, with those aged 35-49 years the least likely to think they will have enough savings when they retire.

The research also revealed that many people in their mid-careers are struggling with debt and high property prices. What's more, around a third of people in this group said they could not come up with £1,000 in an emergency.

"This year's survey highlights that people mid-career are the least likely to rate their overall financial situation as good and are the most likely to have debts," said Sophia Singleton, partner and head of DC Consulting at Aon. "They are also the least likely to be engaged with their company pension and are the ones who feel more squeezed and worried about their savings. They are concerned that they will have to work longer while still not knowing how they will be placed financially at retirement. We need to engage with the 'squeezed middle' now -- before it becomes too late."

Among all employees surveyed, most (59%) expect their current or former employer scheme to be one of their main sources of retirement income, and 55% think their employer scheme is generous or good.

However, more than half of respondents did not know how much money they will need to save before they can fully retire, and for those who are approaching retirement this figure remains high at 41%, Aon noted.

Many employees said they would value on-site, face to face, financial education at work -- and when it comes to specific topics, support with saving for retirement is the most popular request from employees across all age ranges.

Employers can respond to this need by offering services and tools to help improve current and future financial wellbeing and reduce workforce stress -- resulting in "real business benefits", Singleton added.

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