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The rising cost of living has fuelled a "sharp decline" in retirement confidence, research from insurance provider WTW has found, with 79 per cent of savers concerned they are not saving as much for retirement as they should be.
The research showed that 89 per cent of employees are worried about paying for basic living costs, with four in ten extremely worried about the costs they could face.
In addition to this, it found that nearly half (45 per cent) of employees are not on the right track with respect to their finances and over a quarter (28 per cent) expect their financial situation to worsen over the next year.
More than half (59 per cent) of employees also said that these money concerns are having a negative impact on their overall wellbeing, resulting in higher levels of stress and anxiety.
In particular, these growing financial problems are affecting employees’ retirement confidence, as WTW found that nearly four in ten (39 per cent) older workers (age 50 and higher) expect to work past age 70, marking a "sharp rise" from 27 per cent two years ago, and 31 per cent prior to the pandemic.
A further 79 per cent admitted they are not saving as much for retirement as they should be, with less than half (47 per cent) on the right track to retirement.
The survey also identified a "significant gap" between the financial wellbeing support employees want from their employer and the priority employers are placing on financial wellbeing initiatives.
Indeed, WTW found that whilst 59 per cent of employees ranked financial wellbeing as the area where they want the most support from their employer over the next three years, just under a quarter (24 per cent) of employers viewed financial wellbeing as a top priority for their wellbeing programme over the next three years.
Commenting on the findings, WTW’s head of DC consulting, Helen Gilchrist, said: "With challenges meeting their day-to-day expenses while still planning for retirement, employees are looking for help from their employer to build a retirement nest egg, but they also report needing flexibility for emergencies and a desire to maximise their benefits.
“Yet, there is a clear disconnect in priorities between employers and employees.”
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