A fear of inadequate retirement savings is driving hidden pensioners to plan for a later retirement, according to a Willis Towers Watson survey.
The global advisory’s survey found 17 per cent of the population over the age of 65 were employed, compared to eight per cent in 1993.
Willis Towers Watson senior consultant, David McNeice, said there were significant short and long-term financial stresses for Australian employees, with inadequate retirement incomes a major factor.
“There are clear warning signs of a potential problem of hidden pensioners being employed, unable to retire, and much less productive in the workplace,” McNeice said.
“Short-term worries relate to the current costs of living, including debt servicing. Long-term worries relate primarily to the adequacy of resources to provide income in retirement.”
The survey found 52 per cent of Australian workers said retirement security had become a bigger issue for them over the last two years, with the same percentage believing they would still be working at age 70.
McNeice said financial worries resulted in greater stress and led to less engagement at work, poorer health, greater levers of presenteeism and absenteeism, and adversely affected levels of productivity.
“Employers typically believe that employee stress is caused by a lack of work/life balance and inadequate staffing,” he said.
“Employees typically believe that stress is caused by low pay. There is a major disconnect between perceptions of employers and employees on the causes of stress.”
