EXCLUSIVE: 26% believe employers should meet retirement costs as life expectancies rise

sean-mcsweeney

EXCLUSIVE: More than a quarter (26%) of respondents believe that employers should provide for the cost of retirement in societies where life expectancies are increasing, according to research by Chase De Vere.

Its survey of 500 UK residents aged between 35 and 64 also found that 30% of respondents think that having adequate economic resources is important in giving them an acceptable level of control over the lifestyle they desire.

The research also found:

  • 39% of respondents want to retire as early in life as possible, and 19% wish to keep working for as long as possible.
  • 28% of respondents want to retire at state pension age, and 11% would like to continue in their job but work fewer hours after they reach state pension age.
  • 19% of respondents are looking forward to having financial independence in retirement.
  • 33% of respondents are investing savings to help them live a longer life of their own choosing, 51% are maintaining a healthy lifestyle, and 26% have taken no action.
  • 59% of respondents feel the government should provide for the cost of retirement in societies with increasing longevity, and 57% believe it is the responsibility of the individual.

Sean McSweeney (pictured), corporate advice manager at Chase De Vere, said: “Most employees don’t want to work into later life, but don’t seem to understand the importance of planning for the future if they want to retire on their own terms and live the life they want as they get older. Our research indicates that employers are getting off lightly, as employees don’t believe they are responsible for helping to meet the costs of retirement provision. However, employers are already paying some of these costs through provision of workplace pensions and the implementation of auto-enrolment.

“It therefore seems that the efforts employers are making aren’t valued or appreciated by many of their employees. This should be concerning for employers especially as they’ll soon have to increase the contributions they make into employees’ pensions.

“By providing financial education in the workplace services [employers] can benefit from a more engaged, productive and less stressed workforce, while also helping with their own succession planning, otherwise, in the post-default retirement age, employers could be left with an ageing, less productive workforce and a hugely frustrated group of younger talent stagnating behind them.”