Employees in the UK feel more optimistic about almost every aspect of their lives than at any other point in the last five years, with the exception of their plans for retirement, says Fidelity International.
Fidelity’s Global Sentiment Survey, now in its fifth year, shows overall levels of optimism have increased to 54% among UK employees, up from 52% in 2023 and 48% in 2023.
This sense of optimism extends to most aspects of their lives, with respondents most likely to describe the condition of their finances, working lives and health as ‘good’. However, retirement planning casts a shadow over their positive outlook, the findings showed.
Half (50%) of UK employees say the state of their retirement savings has caused them to feel stressed in the past six months.
While respondents are more likely to feel positive about near-term goals such as paying off debts (36%) and maintaining their existing lifestyle and income (42%), they feel far less confident about achieving longer-term goals such as retiring financially comfortably (29%) and preparing for later life (31%).
Daniel Smith, head of workplace investing distribution at Fidelity International, said: “Our findings highlight a growing need for solutions that help employees plan their finances in a more joined-up way.
“While many feel comfortable managing their short-term financial commitments, longer term planning – particularly preparing for retirement – remains much harder to navigate. Employees increasingly want to see their full financial picture in one place and understand how decisions today affect their future.”
The research also highlighted the broader impact of employers supporting employee financial wellness, with reported job satisfaction levels significantly higher amongst those who receive financial wellness support from their employer (46%), compared with those who do not (30%).
Smith added: “Support through the workplace is critical. As trusted sources of information, employers are uniquely positioned to provide access to tools, education and resources that can build financial confidence – from access to digital platforms that bring together savings, pensions and investments, to in-person guidance and coaching that can help employees to make informed choices.
“When employees feel equipped to plan for the long term, businesses may also benefit from a more engaged, productive and resilient workforce.”
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