Global concern on retirement affordability
Australian workers are not the only ones worrying about their ability to afford a comfortable retirement, according to new research released this week by Deloitte.
The research, Deloitte's 2013 Top Five Global Employer Rewards Priorities Survey, has revealed retirement affordability as being one of the top three issues for employees globally.
When asked to identify the top three most important personal challenges, over half (56 per cent) of those surveyed by Deloitte selected the future of their employment security as either their first or second challenge, while retirement security ranked at number three.
The Deloitte research found that these concerns transcended geography, but that those in the Europe, the Middle East and Africa seemed to be most concerned.
"Given this focus on future financial stability, it is not surprising that when asked to identify the personal actions planned over the next three years, employees are planning to take strides to improve their own economic situation by increasing contributions through private savings (48 per cent), increasing contributions to retirement plans (39 per cent), paying off personal debts and obligations (39 per cent), and initiating or increasing formal retirement planning and/or estate planning (27 per cent)," the Deloitte analysis said.
It said employees in the Americas (34 per cent) were twice as likely as any other region (17 per cent Asia-Pacific, 16 per cent Europe, Middle East and Africa) to plan on delaying their retirement age.
"While there are significant variances across regions, including compulsory retirement age, retirement plans and pension schemes, this finding signals a need for talent and reward strategies that calibrate to a generational expectation of extended employment, which is a growing concern for employers," it said.
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