Nearly 4 in 10 employers say less than half of their workers are financially well prepared for retirement.
LIMRA Secure Retirement Institute surveyed employers as part of its 2015 401(k) Plan Sponsor Survey and found retirement readiness is top of mind with them. In fact, 80 percent of employers said an important success measure of their company’s retirement benefit is employee retirement readiness.
To that end, 96 percent of employers, in their role as plan sponsors, measure employee retirement readiness. More than half use an evaluation tool supplied by their plan provider and 42 percent use employee surveys as a measure.
Employer concerns over retirement readiness are right in line with findings from a national consumer survey* that shows just over half of working families “at risk” not having enough to maintain their lifestyle in retirement. That particular survey does not even factor in health care.
Nearly all employers (92 percent) have discussed retirement readiness with their advisors and plan providers. Two thirds of the time, the plan providers have initiated this discussion.
The Institute recommends that plan providers keep initiating these discussions with employers and encourage advisors to do the same. Through a constant dialogue, both parties can better understand what solutions will work best to improve employee retirement readiness.
* — The National Retirement Risk Index, Center for Retirement Research at Boston College.