Aegon UK’s third Readiness report investigates how ready people working in a range of professions are for the retirement they want. A significant number of engineering, manufacturing and production workers (62%) consider their company pension to be their main method of retirement saving, just behind financial (69%) and healthcare workers (67%).
However the importance of a workplace pension is not consistent with their engagement levels, with as many as two in five (42%) workers not knowing how much of their salary their employer is contributing to their pension.
Refreshingly however, almost two thirds (63%) of workers said they would continue paying, or even increase their pension contributions when the auto enrolment minimum monthly contributions rise to 5% of salary in 2018.
When it comes to the income people hope to receive in retirement, those working in the engineering, manufacturing and production sector have a relatively ambitious target of £41,000 a year. However this is significantly above the £15,000 they are on course to receive and 37% more than an average engineer’s salary of £30,000.
By 2018 the state pension age will be 65 for both men and women. According to Aegon’s survey, engineering, manufacturing and production professionals expect to retire at 64, four years earlier than the likely state pension age of a thirty year old today.
Angela Seymour Jackson, Managing Director Workplace Pensions, Aegon UK said: “Workplace pensions are clearly a hugely important part of retirement plans for those in the engineering, manufacturing and production sectors. However, it’s worrying that so many are not engaged with what they have saved so far or how much of an income it will provide them in the future. There needs to be more attention put on giving people access to view and manage their workplace retirement savings online or on their mobile. Employers are well placed to support people get ready for retirement and our new service Retiready, provides a digital interface that employers can use to give their employees more control over their pension.”
Full press release on www.aegon.co.uk