Just 15 per cent of people are confident they will have saved enough by the time they reach retirement despite two thirds acknowledging it is their responsibility, according to an international survey conducted by Aegon.
The firm’s first ever Retirement Readiness Survey also found what the report calls the “retirement cliff” is giving way to more phased approach to retirement. While 54 per cent of people retiring now move straight from working life into full retirement, 60 per cent of current employees expect to keep working in some form beyond their retirement age.
Some 9,000 people from the UK, the US, France, Germany, Hungary, the Netherlands, Poland, Spain and Sweden took part in the survey. Of those, 90 per cent were still employed and 10 per cent had already retired.
Nearly half of all respondents, 47 per cent, said the retirement age should remain unchanged despite increasing longevity. In the UK that figure was 36 per cent. The highest figure was 65 per cent in Hungary and the lowest was the US where it was 32 per cent.
Over three quarters of respondents, 78 per cent, said the Government should continue to provide benefits for retirement, with 51 per cent of Brits surveyed calling for a “balanced approach” of increased taxes and reduced benefits to shore up deficits in state pensions.
Aegon chief executive Alex Wynaendts said: “People in general are enjoying longer, healthier lives, and yet their readiness for a longer retirement is considerably less than that of previous generations of retirees. A concerted effort is needed to reconsider traditional retirement models and provide greater flexibility for phased retirement.
“The good news is that people in general accept their responsibility in creating the conditions that will provide for a secure and satisfying retirement.”