Almost of half (47%) of employees believe that their employer should undertake a role in helping them to prepare for retirement, according to research by Barclays Corporate and Employer Solutions. In it’s “Steps Towards a Living Pension” report which surveyed 2,000 employees who are paying into a defined contribution pension scheme found that 93% of people who responded believe that financial planning for their retirement is their own responsibility, while 66% think this responsibility should be shared with the Government.
82 per cent of respondents would welcome guidance and support on their retirement plans. The research also found that the annual income required for a comfortable yet modest lifestyle in retirement is £17,500 which Barclays has termed the ‘Living Pension’. This figure differs across generations, ranging from £18,200 for Generation Y (ages 19 to 33) £17,200 for Generation X and £7,300 for Baby Boomers.
The research also found that 70% of respondents would appreciate personalised emails about pension saving which would advertise what they stand to lose should they choose to pay into a scheme, 67% of them would like to authorise their employer to increase their savings at the time of their next pay rise, 78% of people expected to have to work later in life than their parents and 54 per cent expected that they would have to monitor what they spend more closely in retirement.
Jonathan Parker, head of investment proposition at Barclays Corporate and Employer Solutions said:[quote] “This report shows that while people believe that it is their responsibility to make sure that they have enough money to live on in their retirement, they can be anxious about making decisions around pensions and may not feel equipped to make a plan alone. There is a clear role here for the employer to offer this much sought-after support and guidance. However, we understand that this can equally be a tough task for employers.” [/quote]
Employers who wish to seek advice on Pension Schemes should call the Employer Helpline.