With India having the highest growth rate among the world’s major economies, employees’ satisfaction with their financial situation has increased from 56% since 2013 to reach 65%, finds a Global Benefits Attitudes Survey conducted by Willis Towers Watson.
However, this satisfaction contradicts employees view towards their current and future state, especially when it comes to retirement. A majority (56%) of Indian employees fear that they will be worse off than their parents during retirement. Even when questioned about their current financial state, almost half (46%) the employees surveyed express concerns, with two-fifths (37%) worrying about their debt, and 1-in-3 stating that their financial problems negatively affect their lives.
These financial concerns cast doubt on their confidence in saving enough money to see them through their retirement. With the expected retirement age slowly creeping upwards, a growing proportion of employees expect to work through their sixties to meet their financial obligations.
The survey finds that working people now consider financial and retirement security a priority and recognise the importance of employer-based retirement benefits. They are largely dependent on their employers to play an active role in their health and retirement as well as in their personal finances.
Financial concerns take a toll on employees and hamper their productivity at the workplace. To be able to help their employees, employers first need to identify these at-risk segments and understand their needs. But to understand this, employees are dependent on advisors to provide them solutions to address the employees’ financial status. Another survey by the Willis Towers Watson Staying@ Work 2015/16 study shows that about one-third of Indian employers have made financial well-being a key aspect of their well-being strategy, pointing to how this is seen as an integral element of an employee’s overall well-being.
What can advisors do? They can tie-up with the organisations and conduct wellness programs for the employees that can educate them more about their savings and investments. In 2015, 41% of employers collaborated with advisors to promote financial education - a trend that is expected to grow to 77% by 2018.
Employees in India favour employer involvement in encouraging them to manage their finances better and to encourage them to save for their retirement, beyond simply providing a retirement plan. They depend on effective recommendations from the financial advisors for their employees.
The survey shows that employers are dependent on advisors for a secure future of their employees and their financial well-being.
The Global Benefits Attitudes Survey was conducted by Willis Towers Watson across 19 countries. This survey was fielded across India for the period between June and August 2015, eliciting 2,003 responses. It includes representative samples at non-governmental employers.
