UpFront | Published in June 2012

Participants Lack Financial Savvy

Confidence in employee retirement assets drops

By Tara Cantore | June 2012

U.S. employers have lost certainty that employees will have sufficient retirement assets when they leave the workplace. Only 4% of employers are very confident their employees will have adequate retirement assets, according to a survey from Aon Hewitt. This is a dramatic shift from last year, when the same survey found 30% of employers were very confident about their employees’ retirement assets.

Moreover, just 10% of employers feel very confident that employees are taking the accountability needed to ensure retirement success. Employers also doubt their employees’ ability to manage their income once they do retire, with only 18% confident their employees will be able to do this.

Aon Hewitt also found that 52% of employers plan to encourage workers to take more accountability for their retirement planning, while 60% said they will focus on helping employees become more educated about the resources available through their jobs.