Pension & Benefits News More than half of employees want employers’ help in planning for retirement
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Monday, August 12, 2019

More than half of employees want employers’ help in planning for retirement

By Pension and Benefits Editorial Staff

Employees want guidance with their finances, according a recent survey of workers and their retirement expectations by Aon. The survey found more than half of respondents want their employer to provide access to financial services and products as well as help in understanding how much to save for retirement. In addition, a vast majority are interested in some form of guaranteed income in retirement.

The Financial Wellbeing Employee Survey found that most people are positive about their financial situation (63%) and are confident about managing their money (66%). Nearly 50% of all respondents carry credit card debt, and nearly 40% of early-career respondents have student loan debt—and yet they feel confident. As they look longer term, only 25% of respondents expect to have a traditional retirement and go straight from full-time work to being fully retired and 60% of respondents worry about running out of money in retirement.

“Our survey validated something we knew was happening—employees’ ideas of retirement are changing, but what was surprising was the magnitude of the change,” said Melissa Elbert, partner, Aon Retirement Solutions. “Few employees are expecting a traditional retirement. Instead, many believe they will significantly delay retirement or work part-time for an extended period. In addition, a significant number expect to never really retire and work in some capacity forever. This expectation may not be practical for employees or employers. When human resources leaders have a clear understanding of their employees’ financial situation and the barriers they face, then they can create ways to support employees and their financial goals. These actions will ultimately benefit both the employee and employer through better productivity, employee morale, and more manageable retirement patterns.”

Additional survey findings include:

  • 40% of all respondents find dealing with money stressful and overwhelming, while that number rises to nearly 50% in the U.S.
  • 56% worry about running out of money in retirement.
  • 40% report they are just getting by financially, yet only 12% of all respondents rate their current financial situation negatively.

SOURCE: www.aon.com.

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