Mercer’s What’s Working™ survey reveals that retirement plans are highly valued in the US; the same holds true for Canada and the UK. At the same time, employees in all three countries feel financially unprepared for retirement.
Arthur Noonan, a partner in Mercer’s Retirement, Risk & Finance business, says a “perfect storm” is fueling worker concerns in the US today. “We have seen defined benefit plan freezes and terminations in recent years, combined with the worst decade of S&P performance,” he says. “Add to this the large bubble of workers – the boomers – reaching retirement age, increased media attention on retirement issues and talk of possible Social Security cuts. People’s sense of security has been shaken.”
Noonan advises employers to consider the business implications of employees who can’t afford to retire when expected. “Retirement plan design should encourage behavior that supports your business model,” he says.
Find out more about how workers view their retirement prospects.
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