Over a third of over-40s now expect to be working into their 70s, with the majority concerned they will not have sufficient savings to retire.
The study, by My Pension Expert found less than four out of 10 people (38 per cent) in this age group were confident they would be able to enjoy a comfortable retirement based on current savings levels.
In addition the survey found that 39 per cent of respondents said that retirement planning is a ‘frequent’ source of stress and anxiety.
When it comes to workplace support, a quarter (25 per cent) of the over-40s still in work said that their employer does not provide adequate information about their workplace pension. This includes details on who their provider is or how their pension is performing.
Meanwhile, 22 per cent said they have not heard anything about their workplace pension since they first enrolled with their current employer.
The research suggests that UK employees want to see their employer do more with 72 per cent stating that it is their employer’s responsibility to ensure they can access information about their workplace pension.
Additionally, when asked when asked to choose from a list of employer policies that would best support retirement planning, 30 per cent chose ‘providing access to independent financial advice’ as a benefit they would want. This was the third most commonly selected choice behind ‘increasing employer contributions into the workplace pension’ (45 per cent) and ‘allowing employees to take a phased retirement’ (36 per cent).
My Pension Expert policy director Lily Megson says: “It’s clear that UK employees, particularly those aged between 40 and 60, are crying out for more support when it comes to their pensions and retirement planning. Pensions are one of the biggest financial commitments a person will make, yet many feel they are left to figure it out alone.
“Naturally, people are looking to their employers for support. The workplace plays a huge role in our lives, so it makes sense that it should also be a source of financial confidence. But our research shows that, for many, this simply isn’t happening. Too many employees are enrolled into workplace pensions and then hear nothing more, leaving them unaware of how their hard-earned savings are performing or what their options are for the future.”
She adds: “That said, the onus shouldn’t lie solely on employers. The government has dedicated plenty of time to pension reforms aimed at boosting the economy and helping businesses. But let’s not forget whose money is at the centre of all this – employees’ pension funds. Their financial security in retirement must be the priority. Greater transparency, engagement, and access to financial education are all vital in ensuring workplace pensions are delivering what employees need.”
