The growing unlikelihood of retirement21.02.20
Director of Employee Wellbeing
In the workplace today, retirement is a privilege, not a right.
In a recent article I wrote for HR Magazine, I explored the growing unlikelihood of retirement for the majority of today’s workforce: it used to be that most people would retire at 60, or 65. Now, the expected retirement age is at least 70 years old. Low wage growth, high rents and house prices, and student loans have all been blamed for devastating young people’s ability to retire.
With millennials firmly rooted in the workplace and Generation Z soon to form 40% of the workforce, a difficult truth for many employees now is that they have been condemned to 60+ years of work by those who came before them. But it’s not just employees who are worried – almost half of employers are concerned that their employees will retire with insufficient pensions. Even those currently in retirement are struggling, with 16% of retirees living in poverty.
So, what can employers do to help? Is it even realistic for employees to work towards retirement anymore?
Employers must continue to push retirement options
Within the next five years, 75% of the workforce will have been born between 1980 and 1995. Although the outlook for these workers is bleak, employers must continue to encourage and educate employees to invest in their future.
Of course, it is not as easy as just ‘saving more’ – this requires spare money which our people simply do not have. But small steps are still steps.
- Employees are significantly more likely to increase contributions if employers offer to match contributions.
- Employees are 50% more likely to increase pension savings based on good communications.
So, it falls to employers to consider the practical alternatives which enable smart spending and smaller savings. There is still hope; the opportunity is there for employers to positively influence their people, and thus impact their future.
Read the full article on HR Magazine
Explore how employers can support their employees (and their futures) in these uncertain times.
Gethin is a psychology graduate who has been helping some of the world’s largest organisations to improve their employee experience and wellbeing for almost two decades. The last 9 years have been spent working as part of the senior leadership team here at Benefex. As a frequent writer and keynote speaker on employee experience and employee wellbeing, Gethin has been featured in The Guardian, The Huffington Post and The Financial Times as well as major HR, Reward and Pensions publications. Gethin is also a founding member of the Engage for Success Wellbeing Thought Action Group, is listed on the Employee Engagement Powerlist and is one of the world’s Top 1010 Employee Engagement Influencers.
In 2018, Gethin published his first book – the award winning HR bestseller ‘A World of Good: Lessons From Around the World in Improving the Employee Experience’, which has gone on to inspire HR and Reward teams at some of the world’s best-known brands.