DUBLIN, 10 August, 2022 - One in five Irish employees nearing retirement age expect to work to the age of 70+ or never expect to retire according to WTW’s latest Retirement Expectations research, with three quarters stating that they are saving less for retirement than they think they should.
There has been an increase in the number of Irish employees who expect to work to 70+ or never retire since 2015. Only 9% of employees aged 50 or older expected to work to 70+ or never retire in 2015 whereas this has risen to 18% in 2022. Interestingly, there is a contrast with those aged under 50, with half expecting to retire before turning 65. This indicates a certain optimism amongst younger employees in Ireland about their retirement age.
The research has also shown that saving for retirement remains a concern for employees in Ireland, with three quarters of employees recognising that they aren’t saving enough for retirement. Those aged 50+ show the biggest gap between their ideal saving rate and what they actually save.
Retirement is the benefit that employees in Ireland most want their employer to prioritise, particularly male and older employees. Overall, 21% of employees want their employer to support them with retirement benefits, with other areas including flexible work arrangements (16%), day-to-day finances (12%), managing health (9%) and investing in their career (7%).
The research also reports an increase in the number of employees in Ireland that say that their retirement plan meets their needs - 66% today compared to 52% in 2019 and 45% in 2015.
Commenting on the research, Maria Quinlan, Head of LifeSight and Defined Contribution solutions in Ireland said, “Several factors could be attributed to working over retirement age or never retiring. Rising costs and economic uncertainty are clearly affecting retirement expectations, and this is necessitating working for longer. On the other hand, some employees in Ireland may want to work for longer to ensure that they will have the financial means and flexibility to enjoy the retirement they had planned for.
“In an increasingly competitive market employers in Ireland must look to the strength of their overall retirement packages.”
Maria Quinlan | Head of LifeSight Ireland
“In an increasingly competitive market employers in Ireland must look to the strength of their overall retirement packages in relation to the needs of their staff. Retirement savings apps, for example, can help employees plan for their retirement and ensure they have sufficient savings in place. Our research shows that about 1 in 5 employees in Ireland use apps for tracking retirement savings regularly and 87% of those who say that their retirement plan meets their needs use these apps regularly.”
The importance of retirement benefits as an attraction and retention tool is at its highest since 2015. Only 27% of employees in 2015 identified their company’s retirement program as an important reason they decided to work for their current employer. This has increased to 54% in 2022 and shows a change in perspective in how employees view retirement as a benefit.
Retention is also linked to retirement benefits with 61% of employees in Ireland determining their company’s retirement program as a key reason why they are staying with their current employer. This is an increase from 41% in 2015 and 53% in 2019.
“This survey has shown that retirement must be a key component of benefits for employees in Ireland, particularly for attraction and retention.”
Maria Quinlan | Head of LifeSight Ireland
Commenting on learnings for employers in Ireland, Maria Quinlan said, “This survey has shown that retirement must be a key component of benefits for employees in Ireland, particularly for attraction and retention. Employer interest in helping employees address both their short- and long-term financial concerns has never been greater. By assessing their retirement package, employers in Ireland have a golden opportunity to leverage their plans and gain an advantage in attracting and keeping talent. With rising inflation employers need to ensure that their employees have sufficient retirement packages.”
WTW’s 2022 Retirement Expectations research was conducted during December 2021 and January 2022 as part of the wider Global Benefits Attitudes Survey. Respondents include 828 employees in Ireland from large and midsize private employers, representing a broad range of industries.
