81% of Workers Aged 40 and Above Have No Retirement Plan, Financial Stress is Rising

Financial insecurity is becoming a growing concern among employees in Bangladesh, with 81 per cent of workers aged 40 and above reporting that they have no retirement plan, according to a new study by MetLife Bangladesh. The findings highlight increasing pressure on employees to manage their immediate financial needs while preparing for life after retirement.

The Employee Benefits Trend Study 2026 found that the proportion of employees aged 40 and above without a retirement plan increased from 53 per cent in 2025 to 81 per cent in 2026. Meanwhile, the share of employees with a definite retirement plan dropped from 24 per cent to just 9 per cent. The proportion with an informal or tentative plan also declined, falling from 24 per cent to 10 per cent.

The trend was evident in both local and multinational companies. Among employees working for local organisations, the proportion without retirement plans rose from 52 per cent to 82 per cent. In multinational companies, the figure increased from 56 per cent to 79 per cent.

The findings suggest that many employees are finding it difficult to prioritise long-term financial security while dealing with their present expenses. Rising living costs, household responsibilities and unexpected financial emergencies can make it harder for workers to set aside money for retirement.

The study’s findings come amid continuing pressure on household purchasing power. According to Bangladesh Bank data cited in the report, inflation remained higher than wage growth for the past two years. In September, wages increased by 7.9 per cent, while inflation stood at 8.3 per cent. This meant that wage earners continued to face pressure on their real incomes despite receiving higher salaries.

The retirement findings were based on responses from 80 employees aged 40 and above, compared with 68 respondents in the same age group in 2025. The wider survey covered 709 participants across Bangladesh, including 583 full-time employees and 126 employer-side decision-makers. Respondents represented industries such as garments, manufacturing, banking, insurance, telecommunications, retail and information technology.

The study also revealed that employees increasingly expect employers to play a role in securing their financial future. Around 86 per cent of respondents said employers should help workers save for retirement, up from 67 per cent in the previous year. Similarly, 81 per cent believed employers had a responsibility to support employees’ financial wellbeing, compared with 69 per cent in 2025.

Financial concerns are also affecting employees’ performance at work. The proportion of respondents who said financial stress affected their productivity increased from 56 per cent in 2025 to 72 per cent in 2026. Although these concerns may arise outside the workplace, they can influence employees’ concentration, motivation and ability to manage their daily responsibilities.

Unexpected expenses were another major concern. About 72 per cent of employees said they expected support from their employers when facing significant unplanned financial difficulties. These could include medical emergencies, accidents and other unexpected expenses that place additional pressure on household budgets.

The report identified a considerable gap between the employee benefits workers consider necessary and the benefits they actually receive. While 77 per cent of employees considered additional employer contributions to retirement savings essential, only 62 per cent said they received such support.

The difference was even greater for life insurance. Although 73 per cent of respondents considered life insurance an essential benefit, only 38 per cent received coverage through their employers. For total and permanent disability insurance, 65 per cent considered the benefit necessary, but just 21 per cent reported receiving it.

The gaps in income protection and critical illness insurance also remained substantial, standing at 33 and 31 percentage points respectively. These findings indicate that many workers may lack adequate protection against events that could affect their income or create significant financial difficulties for their families.

Employees also expressed interest in having more flexibility in choosing workplace benefits. Around 89 per cent said they would like access to additional non-medical benefits that they could purchase through their employers. However, 65 per cent reported that their organisations did not offer the benefits they wanted.

Despite these concerns, the study found that workplace benefits can contribute to employees’ sense of security. About 80 per cent of respondents said insurance and other benefits provided peace of mind in the face of unexpected events. In addition, 79 per cent said existing benefits helped reduce financial stress, while 76 per cent reported lower overall stress.

Job satisfaction increased from 78 per cent in 2025 to 83 per cent in 2026. However, the proportion of employees willing to recommend their organisations as good places to work fell from 42 per cent to 35 per cent, suggesting that greater job satisfaction does not necessarily translate into stronger workplace loyalty.

The study also found a close connection between employees’ perceptions of employer care and their workplace experiences. Among workers who were satisfied with the way their employers cared for them, 92 per cent reported job satisfaction. The figure fell to 48 per cent among those who were dissatisfied with their employers’ care.

Artificial intelligence was another area covered by the research. The survey found that 55 per cent of employees used AI tools in their daily work. Among those who used the technology, 91 per cent reported a positive impact. About 54 per cent said AI reduced their work-related stress, while 48 per cent reported improved productivity and 46 per cent felt less overwhelmed by their workload.

However, the adoption of AI tools was not universal. While 58 per cent of employers said their organisations encouraged or enabled employees to use AI, 42 per cent did not. Among the employers who had not adopted the technology, 62 per cent said they planned to introduce it.

Employers also recognised the importance of employee benefits in building a positive workplace culture. The proportion acknowledging their role increased from 78 per cent to 85 per cent. Among organisations that invested in benefits, 55 per cent identified improving employee morale as a reason for their investment, while 54 per cent cited productivity, 49 per cent pointed to attracting talent and 48 per cent highlighted mental wellbeing.

The study identified four priorities for employers, including improving employees’ financial confidence, providing protection against unexpected expenses, offering more personalised benefits and addressing differences in workplace AI adoption.

The findings underline the importance of long-term financial planning at a time when many employees are struggling to balance present expenses with future needs. They also highlight the potential role of employers in helping workers prepare for retirement through appropriate savings schemes, insurance coverage and flexible benefit programmes.

With the number of employees approaching retirement without a clear financial plan increasing sharply, the findings raise questions about how workers can build greater financial security during their working years. Better access to retirement savings options, stronger workplace protection and greater awareness of financial planning could help employees prepare more effectively for life after employment.