Nearly half (43%) of employees in Ireland say they are not on the right track with respect to their finances, according to the new survey by WTW, a leading global advisory, broking and solutions company. The 2024 Global Benefits Attitudes Survey found that there is also a disconnect between financial wellbeing support employees want from their employer and what companies are delivering.
The research shows that a third (34%) of workers in Ireland say that they have financial problems that are negatively impacting their lives, and more than one-in-four (26%) believe their financial problems will get worse in the next year. These challenging financial circumstances are impacting people’s confidence in when they can retire. Moreover, three-in-five (63%) of employees in Ireland said money concerns are having a negative impact on their overall wellbeing, in particular 42% say their financial situation is resulting in higher levels of stress and anxiety.
The research suggests that more than a quarter (26%) are struggling financially and this has a substantial impact in employee engagement, productivity and other aspect of employee wellbeing.
Maria Quinlan, Head of LifeSight Ireland said: “High inflation combined with the aftermath of a once in a generation pandemic is still causing many employees to feel overwhelmed and discouraged about their financial situation, which is affecting overall wellbeing. However, some improvements have been seen in the past few years which give hope that actions taken by employees and employers are helping.
“Employers should continue to take action to improve financial wellbeing within their organisation: adequate education for employees to help plan their resources and close financial gaps, as well as connecting employees with relevant elements of their total rewards package.”
Growing financial problems and uncertainty with inflation are also affecting employees’ in Ireland retirement confidence and savings. Neary one-in-three (29%) of workers under 50 now expect to work past age 70, up from 16% before the pandemic in 2019. Additionally, three-quarters (78%) of workers admit they are not saving as much for retirement as they should be, and less than half (46%) are on the right track to retirement.
Interestingly, the survey revealed a significant gap between the financial wellbeing support employees in Ireland want from their employer and the priority employers are placing on financial wellbeing initiatives. Six-in-ten (60%) employees ranked financial wellbeing as the area where they want the most support from their employer over the next three years. However, other WTW research found only 24% of employers ranked financial wellbeing as a top priority for their wellbeing programme over the next three years.
Maria explained that: “Employer retirement programmes remain the primary path for employees to save for retirement. With challenges meeting their day-to-day expenses while still planning for retirement, employees are looking for help from their employer to build a retirement nest egg, but they also report needing flexibility for emergencies and a desire to maximise their benefits.
“Yet, there is a clear disconnect in priorities between employers and employees. Employers have an opportunity to align their focus with employee value, cost pressures, and talent objectives to address how their benefit programmes align to retirement and financial wellbeing initiatives.”
About the study
The 2024 Global Benefits Attitudes Survey was conducted from January to March 2024. Respondents in Ireland include 750 employees working at medium and large private sector employers, representing a broad range of industries.
