Benefits April 27, 2011

Firms Should Offer More Help to Retiring Employees

April 27, 2011 (PLANSPONSOR.com) - Benefits directors in the U.S. report that their organizations do not do enough to help employees make critical decisions at the point of retirement, according to a national survey commissioned by Transamerica Retirement Management.

Reported by

Rebecca Moore

Eighty percent of respondents are unsure or disagree that their organization sufficiently prepares employees to successfully manage their financial resources.

According to a press release, survey respondents agree that the organization shares – almost equally with the individual – the responsibility to support the individual through retirement. Respondents said that employees, organizations and government shoulder 41%, 37%, and 2% of the responsibility, respectively.

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In addition, benefits directors surveyed lack confidence in how capable employees are at making sound decisions about retirement preparation. Thirty-five percent rated employees as either “somewhat not capable” or “not capable,” while 45% rated employees’ capabilities as “neutral.”

“These survey findings help debunk a myth that just providing employees with more retirement-related information or education will generate better retirement outcomes,” said Phil Eckman, chief executive officer, Transamerica Retirement Management, in the press release.

The national, random-sample survey questioned more than 400 benefits-program decision makers on the topic of retirement transition – the period just before and just after retirement.