Benefits

Firms Should Offer More Help to Retiring Employees

By Rebecca Moore editors@plansponsor.com | April 27, 2011

April 27, 2011 (PLANSPONSOR.com) - Benefits directors in the U.S. report that their organizations do not do enough to help employees make critical decisions at the point of retirement, according to a national survey commissioned by Transamerica Retirement Management.

Eighty percent of respondents are unsure or disagree that their organization sufficiently prepares employees to successfully manage their financial resources.   

According to a press release, survey respondents agree that the organization shares – almost equally with the individual – the responsibility to support the individual through retirement. Respondents said that employees, organizations and government shoulder 41%, 37%, and 2% of the responsibility, respectively.   

In addition, benefits directors surveyed lack confidence in how capable employees are at making sound decisions about retirement preparation. Thirty-five percent rated employees as either “somewhat not capable” or “not capable,” while 45% rated employees’ capabilities as “neutral.”   

“These survey findings help debunk a myth that just providing employees with more retirement-related information or education will generate better retirement outcomes,” said Phil Eckman, chief executive officer, Transamerica Retirement Management, in the press release.   

The national, random-sample survey questioned more than 400 benefits-program decision makers on the topic of retirement transition – the period just before and just after retirement.