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Helping employees retire on their terms produces better employer outcomes.
As with previous research, we've seen a mix of workers choosing to retire later out of financial necessity and choosing to continue working because they enjoy their job.
Our research found that 22% of global workers are planning to retire later than previously expected. Of this cohort 44% said their plans had changed as their retirement savings weren't as much as they had expected, an 11% rise compared to individuals stating this in 2021 (33%).
|Regions where inadequate retirement savings are delaying retirement for the most workers|
|Top retirement worries|
|Worries about retirement savings being used earlier than expected||29%|
|Worries about catastrophic life events||28%|
How do delayed retirements impact employers?
Employees who don't retire when they originally planned might be experiencing higher levels of financial stress, which may result in lower engagement, higher absenteeism, and less overall productivity.
Additionally, delayed retirements conventionally bring about higher costs for employers such as workplace savings plan costs and group benefits costs.
What actions could employers consider to help employees retire on their terms?
While the individual needs of your employees may differ, there are a few actions employers may consider to make the decision to retire less stressful for their employees.
- Continue to build a workplace culture that supports workers of all ages by understanding not all delayed retirements are caused by a lack of savings. Approximately a third of workers who delay retirement said they enjoy working and want to work longer.
- Further embrace work flexibility by promoting phased retirement. Almost one in four (23%) workers would like this kind of offering from their employer.
- Begin or supplement financial education for all employees in all stages of their career.
a. one in five (20%) would like support on retirement planning
b. while 17% would like financial education
c. and 14% would like education around investing from their employers.
For many workers, leaving the workforce is both an emotional and a financial decision, for which employers can and should provide help.
Bolstering both retirement readiness and financial wellness of all workers may result in improved outcomes in other areas like talent attraction, recruitment, retention, engagement, and productivity.
With those kinds of possible outcomes, employers who actively seek to help their employees retire on their terms may see positive consequences in workers of all ages.
The data collection, research, and analysis for the above markets regarding global employees was completed in partnership with Opinium, a strategic insight agency. Data collection took place between August 2022 and September 2022. The sample consisted of 20,000 respondents with the following qualifying conditions: Aged 20-75; Either they or their partner were employed full-time or part-time; A minimum household income of: Australia: A$45,000 annually; China: RMB 5,000 monthly; Hong Kong: HK$15,000 monthly; USA: US$20,000 annually; Canada: CA$30,000 annually; UK: £10,000 annually; Mexico: $4,500 MXN monthly; Ireland: €20,000 annually; Germany: €20,000 annually; Netherlands: €20,000 annually; France: €20,000 annually; Italy: €15,000 annually; Spain: €15,000 annually; Japan: 3m yen annually; Brazil: R$1,501 monthly; India: 55,001 annually; Singapore: SGD$2,000 monthly.
The data collection, research, and analysis for the above markets regarding multinational firms, also known as global employers, was completed in partnership with Dynata, a third-party market research company, using their global research panel in conjunction with their partner vendors. Data collection took place between 14 December 2021 to 12 January 2022.
This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision, nor should it be treated as a recommendation for any investment or action. Fidelity refers to one or both of Fidelity International and Fidelity Investments. Fidelity International and Fidelity Investments are separate companies that operate in different jurisdictions through their subsidiaries and affiliates. All trademarks are the property of their respective owners.
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