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Just 4% of employers are very confident that their workers will retire with adequate retirement assets, down substantially from 30% in 2011, according to an Aon Hewitt study. Additionally, only 10% of plan sponsors feel very confident their employees are taking accountability for their own retirement success. Fewer than one-in-five employers (18%) are confident that workers will be able to manage their income during retirement. More than half (52%) of employers indicated they will focus on encouraging workers to take greater accountability for their retirement savings in the year ahead, but they aren't asking employees to do it all on their own. Nearly half (44%) of employers will focus on helping workers retire with enough money and most (60%) say they will place a greater emphasis on helping employees understand and use the employer-provided resources available to them. The survey of more than 500 large U.S. employers representing over 12 million employees found, as in years past, plans will continue to add automatic features, in addition to expanding savings choices and offering employees more resources to help them meet their needs while in retirement. Currently, 55% of plan sponsors automatically enroll workers in their employer-provided defined contribution plan, up from 24% in 2006. Looking ahead, more than a third (34%) of plans are likely to add this feature for new hires in 2012. Aon Hewitt found that of workers who are subject to automatic enrollment, most (63%) aren't saving enough to get the full employer match. In response, nearly one quarter (24%) of employers plan to make changes to their automatic feature in 2012. Of those making changes, 26% will apply automatic enrollment to existing non-participants, 26% will add an automatic contribution escalation feature and 24% will increase the initial default rate.
Just 4% of employers are very confident that their workers will retire with adequate retirement assets, down substantially from 30% in 2011, according to an Aon Hewitt study. Additionally, only 10% of plan sponsors feel very confident their employees are taking accountability for their own retirement success. Fewer than one-in-five employers (18%) are confident that workers will be able to manage their income during retirement.
More than half (52%) of employers indicated they will focus on encouraging workers to take greater accountability for their retirement savings in the year ahead, but they aren't asking employees to do it all on their own. Nearly half (44%) of employers will focus on helping workers retire with enough money and most (60%) say they will place a greater emphasis on helping employees understand and use the employer-provided resources available to them.
The survey of more than 500 large U.S. employers representing over 12 million employees found, as in years past, plans will continue to add automatic features, in addition to expanding savings choices and offering employees more resources to help them meet their needs while in retirement.
Currently, 55% of plan sponsors automatically enroll workers in their employer-provided defined contribution plan, up from 24% in 2006. Looking ahead, more than a third (34%) of plans are likely to add this feature for new hires in 2012.
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