Retirement is approaching, but financial preparation is falling behind. For a growing share of employees aged over 40, there is neither a firm plan nor even a tentative one to secure their financial future after working life.
A new study by MetLife Bangladesh reveals that 81 per cent of surveyed employees aged 40 and above have no retirement plan, a sharp rise of 28 percentage points from 53 per cent in 2025.
The Employee Benefits Trend Study 2026, with fieldwork beginning in August, also found that the proportion with a firm retirement plan fell 15 percentage points to just 9 per cent from 24 per cent a year earlier. Those with a loose plan declined 14 percentage points to 10 per cent from 24 per cent.
The trend was evident among employees of both local and multinational companies. The share without retirement plans rose 30 percentage points to 82 per cent from 52 per cent in local organisations, and 23 percentage points to 79 per cent from 56 per cent in multinationals.
MetLife linked the decline in retirement planning to employees’ growing focus on immediate financial priorities over long-term security.
The findings come against a backdrop of sustained pressure on household incomes. According to a Bangladesh Bank report published on Thursday, inflation has outpaced wage growth for the past two years, eroding workers’ purchasing power.
In September, wages rose 7.9 per cent against inflation of 8.3 per cent, leaving households with less spending power despite slower price increases.
This prolonged squeeze on real incomes provides an economic backdrop to the growing financial insecurity highlighted by the MetLife survey.
The retirement findings were based on 80 respondents aged 40 and above, compared with 68 in 2025.
The wider survey covered 709 participants across Bangladesh, comprising 583 full-time employees and 126 employer-side decision-makers, from sectors including garments, manufacturing, banking, insurance, telecommunications, retail and information technology.
The findings also revealed stronger expectations of employer support. Some 86 per cent of employees believed employers should help them save for retirement, up 19 percentage points from 67 per cent in 2025.
Another 81 per cent said employers were responsible for their financial wellbeing, up from 69 per cent.
Financial stress was increasingly affecting work. The proportion reporting an impact on productivity rose 16 percentage points to 72 per cent from 56 per cent a year earlier. The study noted that such stress might not originate directly from work.
Unexpected financial difficulties remained employees’ leading concern. Some 72 per cent expected employer support during significant unplanned expenses, including 75 per cent of those aged 21-28, 74 per cent of those aged 29-44 and 55 per cent of those aged 45 and above.
The study also exposed gaps between the benefits employees considered essential and those provided by employers.
While 77 per cent regarded additional employer contributions to retirement savings as essential, 62 per cent received them, leaving a 15-percentage-point gap.
The shortfall was wider for insurance. Life insurance was considered essential by 73 per cent, but only 38 per cent received it through their employers, widening the gap to 35 percentage points from 11 in 2025.
Total and permanent disability insurance recorded the largest shortfall at 44 percentage points, with 65 per cent considering it essential against 21 per cent receiving coverage. The gaps for income protection and critical illness insurance stood at 33 and 31 percentage points respectively.
Employees also wanted greater choice. Some 89 per cent expressed interest in additional non-medical benefits they could purchase through their employers, while 65 per cent indicated that their organisations did not offer benefits they wanted.
Meanwhile, 80 per cent said insurance and other benefits provided peace of mind against unexpected events. Existing benefits helped reduce financial stress for 79 per cent and overall stress for 76 per cent.
Despite growing financial concerns, job satisfaction rose five percentage points to 83 per cent from 78 per cent in 2025.
However, the share of employees willing to recommend their organisations as workplaces fell seven percentage points to 35 per cent from 42 per cent. The proportion classified as detractors also declined, dropping nine percentage points to 22 per cent.
Employer care was closely associated with satisfaction. Among employees satisfied with their employers’ care, 92 per cent reported job satisfaction, compared with 48 per cent among those dissatisfied. Wellbeing ratings stood at 89 per cent and 28 per cent respectively.
Employers increasingly recognised the importance of benefits in workplace culture, with 85 per cent acknowledging their role, up from 78 per cent. Yet the share reporting higher investment in benefits over the previous year slipped to 49 per cent from 51 per cent.
Among employers investing in benefits, 55 per cent cited improving morale, 54 per cent increasing productivity, 49 per cent attracting talent and 48 per cent supporting mental wellbeing.
The survey also examined artificial intelligence (AI) use at work. It found that 55 per cent of employees used AI in daily tasks. Of these, 91 per cent reported a positive impact and 84 per cent felt comfortable using the technology.
Among AI users, 54 per cent said it reduced work-related stress, 48 per cent reported improved productivity and 46 per cent felt less overwhelmed.
However, only 58 per cent of employers encouraged or enabled AI use, while 42 per cent did not. Of the latter, 62 per cent planned to adopt the technology.
The study identified four priorities for employers – strengthening financial confidence, protecting employees against unexpected expenses, personalising benefits and bridging the workplace AI gap.
