Many employees are faced with the ongoing challenge of managing financial life today while preparing for the future. Do yours need help?
Living the dream?
Aon has conducted employee focused DC research across a number of key DC markets and examined current employee financial health as well as their expectations for retirement. Our multi-country research has enabled us to consider both country-specific as well as 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.
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, including debt – more than 1 in 5 employees who report having good finances also carry credit card debt that they do not pay off each month. Around 1/3 of employees in North America and just over 1/2 of the employees we asked in the UK do not have a plan for retirement. The majority of employees do not know the level of savings they will need to retire, with over half of survey respondents worrying about running out of money in retirement.
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 your employees in choosing the right options for their changing world?
Together we can help your employees reach a sustainable and secure retirement.
Our research is based on a survey conducted in the summer of 2018. Aon partnered with Ipsos to survey over three thousand full-time employees with access to DC plans through their employers in Canada, the United Kingdom and the United States. In addition, Aon has researched financial wellbeing in Ireland, the UAE and Singapore across a range of employees and employers.
The research is broken down into these sections: D R E A M
- Dreaming of financial peace of mind: Most employees are positive about their current financial wellbeing and making financial decisions for the future.
- Real people, real challenges: But our research highlights gaps between employees’ optimism and the reality of their current financial situation.
- Ending up with enough?: Most people worry about running out of money in retirement and many have not set a retirement savings goal. How do we help them plan?
- Aims and ambitions: Ideas about what ‘retirement’ means are changing, and most employees will need flexible income options that can cope with new working patterns and expectations.
- Making financial wellbeing a reality: Employees of all ages want, and need, support to build healthy finances and create a realistic retirement plan, which makes sense for employers too.
For more information, read the Global Survey Results.
For more information: Contact your usual Aon consultant or email firstname.lastname@example.org
Head of DC Solutions EMEA
+44 (0)20 7086 1009
+44 (0)7384 877250
+1 312 381 4882
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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