Following a recent study, it has been revealed that employees are expecting to take more personal responsibility for their pension schemes as the recession made a major impact in many peoples’ retirement plans.
The results were taken from global workforce study of 20,000 employees from private sector organisations across 22 countries. It highlighted that while 37 per cent are comfortable with the responsibility of managing their retirement, 28 per cent disagreed and 34 per cent were uncertain.
Questions were asked regarding the employees current situation with regards to their pension scheme as well as their expectations over the next five years.
With regards to their current retirement planning, more than two thirds (68 per cent) of employees believe that they are personally responsible for their own retirement income needs, with 18 per cent feeling that the responsibility lies with their employer and 15 per cent saying it is the government’s responsibility.
Looking ahead over the next five years, 75 per cent of the employees who were questioned as part of the study said that they felt their pension scheme would primarily be their responsibility, with those suggesting that their employer would be responsible being reduced to 15 per cent and those citing the Government being lowered to 10 per cent.
The results also stated that more than a third of the census will continue to work during retirement due to financial reasons.
Analysts pointed out that the results of the survey showed that a majority of employees were aware of the personal responsibility for managing their finances after retirement. Despite this knowledge, it was highlighted that many employees do not actually feel comfortable managing the provision of their retirement income needs.