UK’s young managers are nervous about their financial readiness for retirement, according to findings published on August 29 by the Chartered Management Institute.
Recent adverse publicity has left 63 per cent of young managers questioning their pension provision, and whilst they dream of an early retirement, 41 per cent are far from confident that their provision will provide adequate financial support for their future. 34 per cent of survey respondents do not expect to be able to give up work completely when they get to retirement age.
“I cannot see how it would be financially viable for me to save enough money in a pension plan to meet the recommendations of financial advisors” says one young manager, Kieron Smith. “I fear that my pension provision will not be adequate and that it could well need topping up with part-time work.”
These are the findings from “Charting the Future”, a survey of UK’s young managers, under the age of 35, and the first of a series being conducted by the Chartered Management Institute, looking into the thoughts and aspirations of today’s young executives.
Over the last 15 or twenty years, many managers have been able to take early retirement. However, the research findings show that whereas seventy per cent of our young managers would like to retire before they are 55, only 32 per cent expect to meet this goal. Whether or not the government decides to increase the retirement age, uncertainty about the value of their pension investments looks likely to keep today's younger managers at their desks into their sixties.
“The restriction on inflation and limited growth in the economy means that there will probably not be enough money (in my investments) for an early retirement,” says David Lane, who works in education.
On a positive note, 85 per cent of those managers interviewed do have pension schemes in place. And to mitigate against fluctuations in different investment sectors, they are spreading their investment risk. 71 per cent have cash savings, 78 per cent belong to a company pension scheme and 53 per cent invest in property. These findings highlight that today’s young managers are taking more responsibility for their retirement provision.
“There is a lot of unease amongst young managers about pension provision. Although the majority of young managers would like to retire at an early age, they are realistic and accept that in today’s economic climate this is unlikely.” Christine Hayhurst, Director of Public Affairs at the Institute commented. “However, it is reassuring to see they are preparing for their future and taking the necessary steps to ensure their investment risk is spread.”
The quick reaction survey “Charting the Future” was undertaken from Monday 5 August – Friday 9 August 2002, amongst 1500 managers under the age of 35; there was a 19 per cent response rate. 10 per cent were directors, 26 per cent were senior managers, 35 per cent were middle managers, and 28 per cent junior managers.
|For further information, interviewees or case study information contact Sally Lingard or Alison Agmen-Smith., on: 020 7497 0496, Email: [email protected]
The Chartered Management Institute www.managers.org.uk, came into being on 1 April 2002, as a result of the Institute of Management being granted a Royal Charter. It shapes and supports the managers of tomorrow, helping them deliver results in a dynamic world. The Institute helps set and raise standards in management, encouraging development to improve performance.