Today’s workers continue to hold positive aspirations for retirement, according to a survey from the Transamerica Center for Retirement Studies (TCRS).
The Changing Face of Retirement: The Aegon Retirement Readiness Survey finds that 69% of employees chose at least one positive word to describe retirement while 52% chose something negative (respondents were allowed to select a range of words to describe retirement, with many selecting a combination of both positive and negative words).
There are significant differences in how employees in different countries view retirement.
Employees in Canada and the United States have the most positive outlook on retirement, possibly reflecting the additional security provided by access to personal pensions.
Americans, for example, have amassed some US$19.4 trillion ($21 trillion) in personal pension assets with three-fifths (60%) of the workforce enjoying access to a personal retirement plan (in most cases, a DC plan). A similar picture emerges in Canada, where US$2.4 trillion ($2.6 trillion) has been amassed in pension assets, second only to the U.S.
Less optimistic nations include Poland, Hungary and Japan. People here were more likely to mention negative words when describing their future retirement. In each of these countries there are concerns around the sustainability or adequacy of the retirement system.
A phased transition into retirement
Many workers worldwide envision some kind of phased transition into retirement. Just 32% plan to immediately stop working and fully retire. In European countries, like Spain (52%) and France (51%), which have histories of compulsory retirement, workers are more likely to plan to stop immediately.
Employment and government policy reforms are needed to facilitate this new approach to retirement, yet change is not catching up with worker demand: only 23% of workers say their employers facilitate transitioning from full time to part time.
In many cases, change in labor and pension laws, as well as a change in cultural norms, are needed to facilitate implementation of a phased retirement program.
“People see themselves phasing into retirement vis-à-vis a gradual shifting of their time with less and less spent working and more on leisure and enjoyment,” says Catherine Collinson, president of TCRS. “This vision cannot be achieved unless governments implement reforms and employers adapt new business practices to facilitate such a transition.”
Related articles: