According to a survey of 9,000 respondents by the pensions and life insurance company Aegon, 71 per cent of working people believe that future generations will be worse off in retirement than current retirees. The survey was conducted in eight European countries and the US.

More than two-thirds accept that they bear principal responsibility for their retirement security. However, only 15 per cent are confident that they are on course to achieve the retirement income they need.

Most support increased taxes or reduced benefits (or both) to ensure the viability of government-sponsored pension systems. At the same time, nearly half of the respondents do not support raising the retirement age. Yet a clear majority expect to continue working in some form past the traditional retirement age.

Alex Wynaendts, CEO of Aegon, said:

People in general are enjoying longer, healthier lives and yet their readiness for a longer retirement is considerably less than that of previous generations of retirees. A concerted effort is needed to reconsider traditional retirement models and provide greater flexibility for phased retirement.

If current pension systems are not adapted to the new realities of longer life spans and declining government and employer funding, the burdens placed on society will be a source of even greater economic and societal turmoil in the future. The good news is that people in general accept their responsibility in creating the conditions that will provide for a secure and satisfying retirement.

The survey also showed that the traditional “retirement cliff” – in which people go straight from working life into full retirement – is disappearing. Phased retirement is becoming the norm, with more people expecting to continue some kind of work activity: 54 per cent of the current generation of retirees went straight from work into full retirement but only 30 per cent of the current working generation expects to do so.

Wynaendts added:

It is in the interests of public policymakers, employers and the financial services industry – working together – to provide the incentives and opportunity for people to achieve the level of financial security that will be required for a longer period than at any time in history.

The survey was conducted in collaboration with the Transamerica Center for Retirement Studies and Cicero Consulting.