A new survey has shown how our attitudes towards retirement are changing.
The catchily titled ‘Changing Face of Retirement: The Workplace Perspective report’ produced by Aegon has thrown up some very interesting findings about how different generations view their retirement planning.
The changing face of retirement
The report surveyed 9,000 people and looked at how retirement planning in many different countries has changed in response to an aging population and the ongoing financial crisis.
In relation to the UK the report found that:
- 75% of people believe future generations will be worse off in retirement, this compared to an international average of 71%
- 69% of people do not expect to experience the ‘retirement cliff’ where they cease all work and move straight into retirement, just 22% of people expect to immediately stop all work when they retire
- However, most people do expect to fully retire by the age of 66, with 16 years in retirement ahead of them, significantly lower than the average of 20 years
- Only one in six people believe they will achieve their target income when they retire
- 94% of people in the UK support pension reform to address the impact of an aging population on state pensions
How the financial crisis has affected retirement plans
The report also confirmed the disastrous effect that the financial crisis has had on retirement provision.
74% of people said that state pensions will be less valuable due to government cuts, whilst 73% of people agreed that they would have to make more personal retirement provision, although five out of 10 people believe that the retirement age, applicable in their country, should not be changed.
The report highlighted a clear understanding that state pension provision will no longer remain affordable with two thirds of people saying that they supported higher taxes to pay for better state pension.
Mark Locke from Aegon said: “With governments no longer able to afford generous state pensions, employees are increasingly looking to company pension plans to fill the gap. Among the employees we surveyed, more than two-thirds believe such benefits should be a basic part of any worker’s pay and conditions.”
Locke continued: “Employees have not yet fully understood the implications of recent changes, or the growing importance of company pension plans. in our survey, employees ranked access to an employer retirement plan as less important when choosing a new job than pay, holiday entitlements, health insurance and career prospects.”
The full report can be found by clicking here.