Living the dream?
This year, Aon has extended its annual Defined Contribution (DC) research beyond employees’ pensions and examined their current financial health as well as their expectations for retirement. What we have found is compelling. On the whole, employees are optimistic about their finances, but their perceptions and reality often do not match up.
Although most people are positive about their current financial situation and the majority say they feel confident about making financial decisions, they face challenges, including debt. Around a third of early to midcareer employees cannot come up with £1,000 in an emergency and almost half of the people we asked do not have a retirement plan. Most do not know what level of savings they will need to retire. The reality is that for most people, retirement will be later in life than previous generations and more flexible.
Our research shows that retiring in your 70s–or not at all–will become increasingly common.
- How will this change the way people plan their retirement incomes?
- How can we persuade them to plan at all?
Across the age ranges it is apparent that there is an appetite for better information and advice from employers.
Are you ready to support employees in choosing the right options for a changing world?
Together we can help employees to make their aspirations a reality.
Our research is based on a nationwide survey conducted in Summer 2018 of over one thousand full-time UK employees with access to DC plans through their employer.
To learn more about Aon's DC and Financial Wellbeing Employee Survey, download the full UK Summary Report above.
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
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