Benefits May 24, 2011

Offering Annuities May Help with Workforce Planning

May 24, 2011 (PLANSPONSOR.com) – A new Mercer Perspectives report suggests that the most compelling incentive for plan sponsors to offer annuity investment options within defined contribution plans is to facilitate workforce planning.
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Employers may want to forecast changes in the workforce due to retirement so they can determine future hiring needs. Mercer says helping employees select an appropriate retirement vehicle may be one way of gaining a clearer picture of retirement patterns.  

According to the report, other incentives Mercer has heard from plan sponsors include: 

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  • Assisting late-career employees determine if they have sufficient resources to retire; 
  • Helping retirees manage the spend-down of assets; 
  • Providing access to group annuity pricing; and 
  • Improving the benefit program’s brand by delivering a complete retirement solution. 

 

The report can be downloaded from http://www.mercer.com/articles/1416615.

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