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 released . The New Social Contract: Age-Friendly Employers explores the vital role of employers in helping workers prepare financially for retirement, a role that has become even more crucial albeit precarious amid the coronavirus pandemic.
The report is based on findings 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. It is a collaboration among Aegon Center for Longevity and Retirement (ACLR) and nonprofits Transamerica Center for Retirement Studies® (TCRS) and Instituto de Longevidade Mongeral Aegon.
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“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 nonprofit Transamerica Institute® and TCRS, and executive director of ACLR. “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.”
Age-Friendly Employers and How They Can Influence Retirement Security
Age-friendly employers embody an inclusive, diverse, and multigenerational workforce and they foster an environment in which workers of all ages can succeed. “Age-friendly employers are integral to a new social contract for retirement. By collaborating with other social partners, employers can help mitigate the retirement-related risks workers currently face and pave the way for a better, stronger retirement system for future generations,” Collinson said.