Not saving, but drowning.
Our research shows that 43% of the UK workforce think they will retire before the age of 65 - despite an inability to save for retirement due to the costs of day-to-day living.
From our survey of 3,000 UK workers on money matters, 51% of respondents state day-to-day living costs as their top financial priority. Almost 60% of respondents don’t even have enough savings to last more than three months should they lose their income. With such immediate financial pressures, it is not surprising that saving for retirement feels so difficult for so many.
think they will retire before 65, despite the costs of day-to-day living limiting their ability to save
wouldn’t have enough savings to live off for more than 3 months if they were to lose their source of income
would consider approaching their employer for financial advice or guidance
are aware of the state of their current financial health
“It is well known that the UK has a retirement income shortfall problem. The immediate financial concerns of today are hindering financial wellbeing and stopping many planning for retirement. Having today under control gives us a better chance of understanding our needs for tomorrow, and also those of ‘one day’ when we enter retirement.
A key theme throughout the research is that there seems to be a breakdown in the relationship between the employer and the employee. People are drowning in financial woes and the employer is not close enough to understand. But more than this, employees don’t trust the company they work for to help them or have their interests at heart. Instead of asking for help, they just wave. This will not be a missed opportunity if employers get closer to their people. Cross the divide, shorten the distance and you’ll be able to support your employees appropriately.
Organisations need to support and encourage their employees in their efforts to deal with debt, day-to-day living and housing. This, together with pension provision and education should form the basis of a holistic workplace financial wellbeing strategy that will benefit both the employer and employee.”
Damian Stancombe, Head of Workplace Health and Wealth