Three-quarters of workers expect to retire poorer than their parents
Nearly three-quarters of employees believe they will less comfortable than their parents in retirement, while a fifth are seriously worried about their finances, according to research.
The results are part of Willis Towers Watson's 2015/16 Global Benefits Attitude Survey, which surveyed 1,895 people of various ages in the UK, and nearly 30,000 worldwide.
In the UK, 71% of employees said their generation would be much worse off than that of their parents', and 64% thought that social security payments would be less generous.
Willis Towers Watson found that only 24% of employees that were struggling with their finances considered themselves to be in excellent health. In comparison, more than half (53%) of those that were not concerned about their financial status considered themselves to be of excellent health.
One in five people said they had financial worries that were negatively affecting their life, with one in four worried about their level of debt. The firm found that younger employees were more likely to be worried about their finances.
However, it said the situation was showing signs of improvement. More than half (52%) of employees were satisfied with their financial situation, which is an improvement on the 42% who answered positively in the 2013 survey.
Willis Towers Watson senior consultant Minh Tran said that employees generally expected wealth in retirement than their parents' generation.
"The immediate financial priorities facing employees in their 20s and 30s - including student debt, housing deposits and childcare costs - can make it difficult to prioritise long-term issues such as retirement savings."
Tran said while financial difficulties can affect employees' productivity and engagement, employers could help by offering flexibility and personal choice when it came to tackling individual financial anxieties and priorities.
"We are already seeing examples of companies that offer generous pension contributions, giving employees more choice over how they allocate those funds across a number of different savings vehicles, such as ISAs and corporate savings plans. The aim is to help employees with their short and medium term financial goals, as well as more established long-term retirement savings," she said.
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