New research on the current state of retirement in the UK reveals that for many UK employees, decisions around retirement are laden with confusion, indecision and anxiety.

Spotlight on UK financial wellbeing, the new report from Close Brothers’ Workplace Financial Wellbeing Services, found that the pandemic, and the subsequent economic uncertainty has resulted in greater insecurity around retirement. Almost a quarter of all employees (23%) have changed their retirement date recently, with 18% deferring it. Those approaching retirement are even more likely to have made changes to their plans; over one in three (36%) of employees aged 55+ have changed their retirement date, with most deferring it (32%).

9% are currently “undecided, uncertain and anxious”. Of those over 55s who pushed their retirement date back, it’s because they simply cannot afford it right now. Conversely, of those in the same group who have brought their retirement date forward, most cite that ‘life is too short’ (47%).

Not being able to afford to retire is one of the most common financial concerns, with one in three (35%) employees across the country saying it’s front of mind. This jumps significantly to 41% of employees aged 55+. Because of this uncertainty, retirement planning is also falling by the wayside. One in four (25%) employees admit their retirement plans are not on track, while one in 10 (10%) say they have no retirement plans at all. 27% of employees over the age of 55 feel their retirement plans are not on track currently.

This ongoing uncertainty around retirement is having consequences within businesses which could have cost and retention impacts over time, the report said. Companies are currently experiencing blocks on succession (22%), and while companies do value retaining experienced workers (28%), there are some side-effects in engaging a higher proportion of senior workers for longer, with a higher average payroll (23%) and an increase in healthcare costs (18%). Companies are also experiencing difficulties in recruitment and talent development (30%), because there isn’t the turnover of senior personnel necessary to incentivise young, talented staff members.

Amongst employees, there is appetite to get plans in place, but it’s about knowing where to start. When it comes to retirement, for 21%, understanding their choices and knowing how to make a good decision is key when it comes to planning. Half (54%) of employees say that knowing whether they would actually be able to afford to retire and if so when, would bring a real sense of security; this is particularly the case for women (66%) who want that certainty.

The heart of the problem is a disconnect between what employees want and need to effectively plan for retirement, and what’s being provided by companies. 43% of employees want pension advice, but only a small number of companies offer it; just 22% of organisations offer financial advice with a pension provider, 17% offer financial advice with a financial education provider and just 16% give pre-retirement seminars.

Daniel Swift, managing director of Wealth Planning, said: “Given the ongoing economic uncertainty, coupled with the fact retirement is now firmly in the hands of every individual, anxiety around retirement is writ large in our report. It is a weighty responsibility and the perils of getting it wrong are significant.

“What is clear from our research is that as retirement planning is a career long commitment, and as it is now not only reliant on pensions, people need much more support and guidance throughout their career, in particular when it comes to navigating the complex decision-making when approaching retirement. Employers spend a lot of money on their workplace pension schemes, but need to do more to ensure that their employees are fully informed, fully engaged and fully supported.”