Transport, logistics and distribution workers set to carry light load into retirement01 July 2015 Back to results
- Three in five (60%) consider their company pension to be their main method of retirement saving
- Yet, over half (53%) didn’t know how much of their salary their employer was contributing to their pension
- One in three (28%) have reviewed their retirement plans recently, among the highest out of all professions
- But workers in this sector face a £30,000 shortfall in retirement income
Aegon UK’s third Readiness report investigates how ready people working in a range of professions are for the retirement they want.
Importance of workplace pensions
Company pensions play a major role in retirement provisions for transport, logistics and distribution professionals, with three in five (60%) workers saying it’s their main method of retirement saving, just behind financial services (69%) and healthcare workers (67%).
Workers in this sector are also among the most engaged with their pensions, with nearly one in three professionals (28%) reviewing their retirement plans recently. In contrast, only one in ten (12%) administrative workers had done this.
However, a lack of awareness does appear, with two in five (40%) transport, logistics and distribution professionals having no idea how much of their salary they’re contributing to their company pension. Similarly, over half (53%) of them didn’t know how much of their salary their employer is contributing to their pension and this shortfall in awareness could have implications for their retirement expectations.
When it comes to the income people hope to receive in retirement, those working in the transport, logistics and distribution sector have relatively ambitious expectations, aiming to receive £40,000 per year, but this is desperately out of reach of the £10,000 they are on course to receive and nearly double the average transport, logistics and distribution workers salary of £25,000.
By 2018 the state pension age will be 65 for both men and women. According to Aegon’s survey, transport, logistics and distribution workers expect to retire at 64, four years earlier that the likely state pension age of today’s thirty year olds.
Angela Seymour Jackson, Managing Director Workplace Pensions, Aegon UK said: “It’s encouraging to see transport and logistics professionals engaging with their retirement plans and workplace pensions. However, the expectations they have for their retirement age and annual retirement income appear at odds with reality. To avoid a shock in retirement, workers in this industry either need to begin increasing their contributions or reign in their ambitions about their retirement expectations. However, they need support to do this. There needs to be more attention put on giving people access to view and manage their workplace retirement savings online or on their mobile. Employers are well placed to support people get ready for retirement and our new service Retiready, provides a digital interface that employers can use to give their pension.”
How other professions stack up
Monthly retirement savings by profession
£234 Banking & financial
£74 Creative arts & design
£95 Social care & guidance
Pension pots by profession
£43k Engineering, manufacturing & production
£40k Banking & financial
£38k construction & property
|Profession||Average Readiness Score|
|Advertising, marketing and PR||49%|
|Animal and plant resources||50%|
|Banking, financial management and accountancy||54%|
|Charity and voluntary work||50%|
|Construction and property||48%|
|Creative arts and design||49%|
|Engineering, manufacturing and production||54%|
|Hospitality and events management||47%|
|Human resources and employment||49%|
|I am unemployed||38%|
|Profession||Average Readiness |
|Insurance and pensions||56%|
|Law enforcement and protection||54%|
|Leisure, sport and tourism||50%|
|Management and statistics||57%|
|Media and broadcasting||41%|
|Mining and land surveying||57%|
|Publishing and journalism||47%|
|Retailing, buying and selling||48%|
|Social care and guidance work||49%|
|Transport, logistics and distribution||52%|