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The majority of employees are unprepared for retirement
12th December 2012
From a recent survey conducted by WEALTH at work, it is revealed that alarmingly only 16% of employers believe their employees are saving enough for their retirement.
The survey results also show that those that are saving might not be making the most out of turning their pension savings into retirement income – with only 18% aware of the various retirement income options available and as little as 13% aware that they no longer have to purchase an annuity.
Employees must re-think their retirement plans. Financial education is vital.
Jonathan Watts-Lay, Director, WEALTH at work, comments, “It is critical that companies offer financial education to ensure employees save towards their retirement and understand the various retirement income options available to them at the point of retirement. The Association of British Insurers show that a third of people do not shop around for an annuity when they reach retirement, and as a result, may be missing out on a higher income, potentially losing thousands of pounds over the course of their retirement.”
The research also revealed that 71% of employers believe there will be an increased requirement for specialist advice at retirement.
He adds, “It is vitally important for employees to seek specialist advice and guidance whether preparing for retirement or requiring help to generate income at the point of retirement. After all, if an employee makes the wrong financial decision with their pension savings, it could have a detrimental financial effect, impacting the rest of their life.”
Leslie Huss-Smickler, Head of Retirement Services, WEALTH at work and leading pension industry expert agrees with Jonathan and also comments, “With the variety of workplace savings on offer and retirement income options available, financial education and advice has never been so important – we should not expect employees to become pension experts. Employers should not encourage pension saving in the workplace but then abandon employees when they need help making life changing decisions with their pension pot.”
Download your copy of the Rethink Retirement Survey Results.
Please see The majority of employees are unprepared for retirement PDF to learn more.
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