56% staff fear they’ll be less well off after retirement than their parents
According to the survey by global advisory, broking and solutions company Willis Towers Watson, 56 per cent of Indian employees still fear they would be worse off than their parents post retirement.
The study, conducted on over 2,000 employees, found that almost 54 per cent are worried about their future financial state. When questioned about their current financial state, 46 per cent of the respondents expressed concern and more than 1 -in-3 stated that their financial problems are negatively impacting their lives. “The growing insecurities of employees around long-term financial stability demands immediate attention of employers,” Kulin Patel, Director, Willis Towers Watson India, said.
The survey results also suggest that 1-in-4 employees, when asked about their top priorities, prefer superior retirement or health benefits to pay and bonus, and more than 2-in-5 would prefer some alternatives to pay and bonus. According to the survey, the biggest growth in promoting financial well-being in India will be in the use of customised and targeted messages sent as advisory by the employer on how much one should save as per his salary bracket.
While 50 per cent of the employers are intending to do it over the next three years, 13 per cent are currently doing it. Employers should aim to help employees address different issues from short-to-medium-term savings to the traditional long-term retirement savings, it added. “There is a need to boost engagement and productivity by reconfiguring the benefit package offered by employers. Different employee segments may require a different mix of benefits that depend on their financial priorities at their given stage in life,” Patel added.
7th pay panel pension, arrears for Pre-2016 retirees by month-end
All pre-2016 retirees will get the benefits of 7th Central Pay Commission (CPC) recommendations like hike in pension and arrears by this month end, the government has said. For existing pensioners, who have retired till December 31, 2015, the revised pension or family pension with effect from this year shall be determined by multiplying the pension or family pension, as had been fixed at the time of implementation of Sixth CPC recommendations, by 2.57, it said, adding that, the amount of revised pension so arrived at shall be rounded off to next higher rupee. The Seventh CPC’s recommendations will be implemented from January 1, 2016.