The “squeezed middle” are the people that are most worried about having adequate retirement savings, Aon has revealed.
According to Aon DC and Financial Wellbeing Member Survey 2018, people aged between 35-49 are the least likely to think they will have adequate savings when they retire, with debt remaining a large issue.
The survey, questioning 1,000 full-time employees, also found that over half of people were unsure of how much they needed to retire, while 57 per cent worry about running out of money and 60 per cent believe they will not have the money to retire when they want to.
Aon DC consulting partner, Sophia Singleton, said: “This year’s survey highlights that people mid-career are the least likely to rate their overall financial situation as good and are the most likely to have debts.
“They are also the least likely to be engaged with their company pension and are the ones who feel more squeezed and worried about their savings. They are concerned that they will have to work longer while still not knowing how they will be placed financially at retirement. We need to engage with the ‘squeezed middle’ now - before it becomes too late.”
Furthermore, Aon also found a disconnect between what people think they can save, and how much they think they will need, with 72 per cent believing they feel confident about making financial decisions, while 59 per cent feeling they are not saving enough.
In regards to contribution levels, 60 per cent rely on their employer to set the levels, while only 20 per cent take advantage of the maximum matching levels.
Financial education was also noted as key, particularly around retirement which was the “most popular” request from employees for support.
Aon area director, Martin Parish, said: “Employees are expecting more support from their employers, 46 per cent of the respondents said they would appreciate more help from their employers.
"Individuals will have different priorities at different stages of their careers, so it is important that employers and trustees work together to consider a plan to support their employees on an ongoing basis.”
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