Workers globally and in the U.S. expect they will need on average 67 percent of their current income in retirement, yet relatively few believe they are on course to meet these needs (25 percent globally, 39 percent U.S.), according to research published recently by the Transamerica Center for Retirement Studies (TCRS).
The report – The New Social Contract: Age-Friendly Employers – explores the evolving nature of employer-employee relationships and it examines the vital role of employers in helping their employees achieve a financially secure retirement. The findings are based from the 9th annual global survey of 15 countries spanning the Americas, Europe, Asia and Australia that was conducted in 2020 at the early stages of the pandemic.
“Retirement systems around the world are undergoing severe strain due to increases in longevity, population aging, globalization, and evolving employment trends,” said Catherine Collinson, CEO and president of Transamerica Institute® and TCRS. “The coronavirus pandemic and economic downturn are intensifying existing risks to retirement security — and creating an even greater urgency for a new social contract among governments, employers, individuals, and other stakeholders.”
The report identifies ways employers can support their employees to extend their working lives and financially prepare for retirement, such as:
- Cultivating an age-friendly workplace that recognizes the value and contributions of workers of all ages. When asked about initiatives their employers have in place to encourage a multigenerational workplace, only 32 percent of workers globally (37 percent U.S.) indicate their employer has an age-neutral workplace; 27 percent globally (30 percent U.S.) say their employer has a supportive work environment; and 25 percent globally (30 percent U.S.) say their employer has an inclusive culture; and
- Providing retirement, health and welfare benefits — and design them with portability in mind so that workers can maintain them as their employment situation changes. Fifty-two percent of workers globally are offered a retirement plan by their employer (66 percent U.S.). Fifty-eight percent of workers globally agree with the idea that a “job for life” is a thing of the past (61 percent U.S.). Read the full report.