Nearly half (46%) of working people in the UK say their biggest fear for the future is not having enough money in retirement, but almost a third (30%) admit retirement is not part of their current financial planning, according to research by Punter Southall Aspire.
The survey of over 2,000 workers across the UK also revealed that 66% do not know if they are saving enough for retirement. Over three-quarters (78%) of respondents are budgeting monthly, rather than looking further ahead, and only 28% stick to their budgets.
Johanna Nelson, associate director of communications at Punter Southall Aspire, said: “People are more concerned with now rather than then, so [organisations] can tap into this by providing financial education on issues that concern them, such as debt management or budgeting. The positive benefits of pensions and auto-enrolment can be introduced as part of this conversation.”
A third (32%) of workers told the survey they could not remember their pension contribution rate, and said it was the amount the employer set as the default, while 82% said they want their employer to guide them in a positive direction about their retirement savings.
While 38% of respondents said they would respond to scare tactics used in pensions communications, three-quarters (76%) said their pensions engagement would be increased by exciting messages.
Nelson said: “There is a real need for employers to improve their pensions communications and this means [they need to get] proactive and stop relying on the material produced by pension providers. Arguably, employers have a duty of care to help ensure employees have a positive retirement and are in a strong position to make this happen.
“Employees want financial education and guidance on current and future financial issues and by promoting positive communications and financial education, they can encourage a savings culture. To support this, [organisations] can use technology and tools to help employees work towards reducing financial anxiety and improving their financial wellbeing, as well as building pensions engagement.”