56% Indian employees apprehend poor retirement benefits: Survey

New Delhi : More than half of Indian employees anticipate that they will be up against a less comfortable retirement than their parents’ generation, a survey by global advisory, broking and solutions company Willis Towers Watson said.

According to the 2016 Global Benefits Attitudes Survey, 56 per cent of Indian employees still fear that they will be worse off than their parents in retirement, although employees’ satisfaction with their financial situation in the country has increased nine per cent since 2013.

Support TwoCircles

The study said as many as 46 per cent of employees expressed concern when questioned about their current financial state, and more than one in three stated that their financial problems negatively affect their lives.

“The growing insecurities of employees around long-term financial stability demands the immediate attention of employers,” said Kulin Patel, Director, Willis Towers Watson India.

“Companies are beginning to take steps by making their employees’ financial well-being a core component of their overall well-being strategy and employee value proposition,” he said.

The study of over 2,000 employees in India found that almost 54 per cent worry about their future financial state, whereas 52 per cent of employees think that they are less effective at their work due to financial problems.

In addition, 57 per cent of Indian employees support the idea that their employer should have a role in encouraging them to save for retirement.

However, 32 per cent would be uncomfortable receiving targeted messages from their employer on these matters.

“Gradually, employers are understanding the link between their employees’ well-being and their performance and productivity at work, and how this affects the organisation’s bottom line. Soon, they will realise that a holistic approach is needed to address these issues effectively,” Patel said.

Further, the survey pointed out that the biggest growth in promoting financial well-being in India will be in the use of customised and targeted messages, which 50 per cent of employers intend to do so over the next three years, on top of the 13 per cent currently doing so.

The survey also said the employers should aim to help employees by addressing their different issues, from short to medium term savings through to the traditional long term retirement savings.

“There is a need to boost engagement and productivity by reconfiguring the benefit package offered by employers,” Patel said.

“Different employee segments may require a different mix of benefits that depend on their financial priorities at their given stage in life,” he added.