Get access to the exclusive HR Resources you need to succeed in 2018.
Sign up for free email newsletters and get more SHRM content delivered to your inbox.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 14 cities across the U.S. this fall.
Gain the skills you need to rise to the next level in your career. Jon us at SHRM's Leadership Development Forum, October 2-3 in Boston.
Employees struggle with making sound retirement decisions
U.S. employers don't do enough to help their employees make critical decisions at the point of retirement, according to a national survey of U.S. benefits directors commissioned by Transamerica Retirement Management.
The national survey questioned benefits-program decision-makers across a broad range of industries on the topic of retirement transition—the period just before and just after retirement when critical retirement preparation decisions need to be made. The survey examined whether benefits directors believe that employees have the resources, support and savvy to make sound decisions, and it uncovered a high level of concern:
• An overwhelming majority (80 percent) of benefits directors said their organizations do not prepare employees sufficiently to manage their financial resources successfully in retirement.• Most benefits directors lacked confidence in how capable employees are at making sound decisions about retirement preparation, with 35 percent rating their employees as “somewhat not capable” or “not capable” and 45 percent rating their employees’ capabilities as “neutral.”
• An overwhelming majority (80 percent) of benefits directors said their organizations do not prepare employees sufficiently to manage their financial resources successfully in retirement.
• Most benefits directors lacked confidence in how capable employees are at making sound decisions about retirement preparation, with 35 percent rating their employees as “somewhat not capable” or “not capable” and 45 percent rating their employees’ capabilities as “neutral.”
“For decades, employers have devoted a wide range of retirement resources, matching retirement plan contributions, employee-education efforts and the like, toward the goal of helping their employees enjoy positive retirement lifestyles,” said Transamerica Retirement Management CEO Phil Eckman. “Add in the immense resources of the Internet, and today’s employees should, theoretically, be better equipped than ever to make good decisions. But the nation’s benefits directors are telling us the opposite.”
For many U.S. workers, Eckman continued, "the employer is the primary source, and sometimes the only source, of information and support for retirement preparation. Benefits directors walk this path with employees and therefore have a unique position from which to gauge whether employees on the cusp of retirement have the wherewithal to make good decisions, which is what makes these findings and their viewpoints so compelling.”
Stephen Miller, CEBS,is an online editor/manager for SHRM.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
HR Professional Development Education in a City Near You
SHRM’s HR Vendor Directory contains over 10,000 companies