Over 90% of people in the construction and property sector are financially on track for the retirement they aspire to have, according to new research from Aegon UK.
The survey was conducted among 175 construction and property professionals as part of a nationally representative sample of 3,890 people across the UK.
It showed just 9% of respondents had sufficient finances ahead of their retirement – a figure unchanged since April 2015 and below the UK average of 12%.
At the same time, the research found one in seven (14%) construction and property professionals were saving more into their retirement pot as a direct result of pension freedoms and initiatives like workplace auto-enrolment.
Steven Cameron, Pensions Director at Aegon UK, warned:
“The stark reality is that 91% of workers are falling short of their retirement targets; targets which are themselves very stretching. In this sector there is a job to be done to lay solid foundations on which to build realistic retirement plans.”
“As we enter an era of personal responsibility for retirement saving, it’s heartening to see the pension freedoms are having a positive effect on saving behaviour, with 14% saving more into their pensions in response to the freedoms, but this needs to be a lot higher if we’re to see real change.
“For people in the construction and property sector the pensions penny is yet to drop, with some of the lowest engagement levels.
“Workers in this sector need to revisit their retirement plans before it’s too late.”
Pension-savers working in this industry had also become more realistic about the retirement income they expect to receive. Average annual income expectations within this sector have fallen from £46,000 in April 2015, to £40,200 in the past twelve months.
Despite these reasons for optimism, engagement levels remain low. Under a quarter (23%) have checked the performance of their retirement savings within the last six months, while 21% have taken steps to review their plans for retirement, trailing the UK average of 24% and 22%, respectively.
These factors all contribute to the construction and property sector having an average readiness score of 54.