Many employees don’t know whether they’ll be able to retire comfortably

A new survey has found that nearly 40% of employees believe their pension will only provide enough money to ‘just get by’ in retirement.

Aviva’s ‘Working Lives Report 2023: Fit for Future’ shows that only 20% said their pension would be enough to retire comfortably.

Those closest to retirement are the least confident about their post-work finances – 26% of over 45-year-old employees said they were not confident about retirement planning compared to 20% of 16–44-year-olds.

Emma Douglas, Director of Workplace Savings & Retirement, said, “Pension freedom legislation has given people more flexibility and choice when it comes to choosing how to use savings at retirement, but it has also created a wealth of options.

“It is desperately concerning that many pension savers are overwhelmed by the choices they face and are sleepwalking into retirement.

“This is a particularly financially challenging time which makes it more important than ever that people understand their pension savings and the retirement options available to them.

“The pensions industry and government must work together to support today’s retirees in making the right choices for what we hope are long and financially comfortable retirements.

“We are calling on government to support pension savers by ensuring they get access to some form of financial advice at retirement which may be full or simplified advice depending on their circumstances.

“We are also asking for the removal of regulatory barriers to allow providers and other regulated entities to deliver more effective support, such as personalised guidance. We also feel more can be done to support employers in promoting pension advice and guidance through workplaces.”

To find out more about contracting please contact Amelia on 01206 591 000 or email amelia.bowlez@contractorumbrella.com.