Two thirds (66 per cent) of UK workers do not believe that they can afford to retire at 65, while one fifth (20 per cent) of all employees think that they will never be able to retire, new research has revealed.
A new report by Wealth Wizards and the Centre of Economics and Business Research (Cebr) found that a lack of pension savings is pushing up the expected age of retirement. Although 86 per cent of employees want to retire before or at the age of 65, the average age that workers believe they will be able to retire is 69.
“Britain’s workforce is ageing at a fast pace and apart from increased life expectancy and better health, a major source for longer life worktimes is insufficient pension saving, as our research has shown,” said Kay Neufeld, a senior economist from Cebr.
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“This means that a significant share of employees are working longer because they have to, not because they want to. Businesses are running the danger of overlooking the implications such as, productivity and morale if staff stay on longer due to financial worries. There is a clear space for financial advice in the workplace.”
More than half of employees blame themselves for their delayed retirement, with 56 per cent saying that they wished they had added more to their pension fund when they were younger.
However, 49 per cent of over 55s, and 59 per cent of 18-34-year olds, say that their employers should do more to ensure that their employees are financially prepared for retirement. One quarter (25 per cent) stated that their employer does not currently offer financial education but that they would like the company to do so.
“There is a disconnect between employees and employers when it comes to retirement age, and while employees want to retire at or before 65, many lack sufficient funds and are being forced to work into later life for financial reasons,” said Phil Blows, director at Wealth Wizards.
“There is a high demand from employees for their employer to do more to help them achieve their retirement objectives, and by providing financial advice now, it could save employers significant wage bills in the future.”