Aon-DC and Financial Wellbeing Global Employee Survey

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Living the dream? Aon has conducted employee-focused DC research across a number of key DC markets and examined their current financial health, as well as employees' expectations for retirement. Our multi-country research has enabled us to consider both country-specific and global trends, and 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. We have seen consistency in responses across members in different geographies – which is good news for multinational organisations as they can consider and plan solutions globally. Although most people are positive about their current financial situation and the majority say they feel confident about making financial decisions that affect their future, they face many challenges. One of these challenges is debt; more than one in three employees (and almost half in the US) carry credit card debt that they do not pay off each month. The majority of employees do not know the level of savings they will need to retire and over half of survey respondents worry about running out of money in retirement. For most people, retirement will be later in life than for 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? Employers need to weigh the reality of these varying expectations with their own future workforce planning needs, in order to have a productive, engaged and current workforce. Across the age ranges, it is apparent that there is an appetite for better information and advice from employers. Thankfully, employer ambition here is high: 62% of multinationals in our 2018 Financial Wellbeing Study expect to have a global financial wellbeing strategy in place within the next three years. In fact, many firms already offer component parts of a financial wellbeing strategy, such as protection against ill-health and retirement savings provision. However, they are failing to integrate decisions or to recognise or brand their programmes as financial wellbeing. To address the diverse needs of a workforce, true change may require the use of a variety of tools and resources across a broad range of financial topics. Most employers in our 2018 Financial Wellbeing Study communicate about programmes through email and company intranet/ benefits portals; however, opportunities exist to enhance the use of technology – only 14% carry out targeted communications for different generations and only a minority make use of smartphone apps. Are you ready to support your employees in choosing the right options for their changing world? Together we can help your employees reach a sustainable and secure retirement. 2

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