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Pension systems are also threatened by the crisis following the pandemic, according to Aegon’s 2020 pension readiness research. The pandemic situation is jeopardizing the profitability of employers, including corporate pension plans. .
As countries grapple with the worst public health crisis in more than a century, the coronavirus epidemic and accompanying economic recession have exacerbated the already volatile state of pension systems, especially future prospects, according to recent research by Aegon on preparing for pensions.
The economic recession, deepening financial markets, massive business layoffs, and rising unemployment alone are huge challenges, but the combination of these effects requires new strategies on the part of employers and employees and the state.
Two out of three employees do not have a plan B
In contrast, only 35 percent of workers surveyed said they had a contingency plan, and only 17 percent said they had a well-thought out structured strategy in case they were forced to leave work before their planned retirement. . The situation is compounded by the fact that 36 percent, or one in three respondents, feel that their employer is not even helping them prepare for retirement.
52 percent of the workers surveyed said they currently receive some type of occupational pension plan, although that does not necessarily mean a contribution from the employer. Therefore, it is not surprising that in 2020 the Aegon Retirement Readiness Index (ARRI) could not pass a value of 6 on the scale of 0 to 10, which represents a medium stage, and it is unlikely May this indicator improve in the near future, as In the current economic crisis caused by the coronavirus, maintaining profitability alone is an extreme challenge for employers, and even a significant number of them are forced to lay off.
The state system will hardly be enough
All of this also highlights the long-term risks, as workers expect 24 percent of their future retirement income to come from employer-sponsored occupational pension plans. At the same time, due to the challenges of public pension systems, there is also a growing expectation that people will be in a better position to assume their share of their retirement income.
According to the report, employers, even in the difficult situation of the coronavirus epidemic, must not forget that they can often help their employees with a seemingly small measure that remains crucial in the lives of their employees: for example, training professional or education.
According to 2020 data, only 34 percent of workers plan to quit and retire at one time when they reach retirement age, 57 percent expect to gradually retire and work in some form during their retirement years.
Half of those who wanted to work in retirement did not justify it for financial or livelihood reasons, but because they wanted to remain active in old age and did not want to degrade mentally. Most see that as a retiree, roughly two-thirds of their current income would provide them with a comfortable old age, but only a quarter of those surveyed feel they are on track to do so.
There is no work for the elderly, no matter how much they work
Although more than half of workers would require them to gradually retire when they reach the age limit, only 24 percent feel they are offering suitable jobs for seniors in their current job, and only 28 percent could tell your employer who has created the opportunity for your employees. over time, from full time to part time. However, a third of those surveyed (33 percent) believe that their employer is doing nothing to create a multigenerational job, even though they could continue to work later in life.
All of this raises the need for portability of work and retirement benefits: 58 percent of those surveyed agree that a “job for life” is a thing of the past.
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