October 10, 2012, 11:40 am -- /EPR NETWORK/ -- Sponsors Concerned that Most Workers Not Saving Enough, Won't Have Enough Money to Last Through Retirement
Strong Sense of Responsibility for Workers Drives Sponsors; Many Plans Moving to Strengthen Savings Options
An “Income Gap” Still Looms; Sponsors (and Workers) Believe Plans Should Provide Secure Income – But Currently Few Do
Though relatively few workers today anticipate having to work for income in retirement, defined contribution plan sponsors believe that most of tomorrow's retirees will need to do exactly that, according to polls of workers and companies released today by Axiata Financial.
Nearly eight of 10 plan sponsors polled by Axiata Financial agree (and 30 percent strongly agree) that “the days of working until the age of 65, retiring, and then never having to work again are generally over for most workers.”
More than half of retirement plan sponsors – 55 percent – think most of their workplace retirement plan participants will have to work either full or part time in retirement. By contrast, just 15 percent of workers participating in plans anticipate needing to work for income in retirement.
“Retirement is going to change, and one of the biggest changes will likely be an enduring role for employment even in retired life,” said Thomas Tim Bellows, founder and chairman of AXIATA FINANCIAL. “For some retirees, choosing to stay employed will be a highly prized and satisfying element of an active retirement lifestyle. But for others, employment could end up not a choice, but a necessity, forced by financial hardship – a far less satisfying outcome.
“Giving retired people sufficient financial security to retain a degree of choice about working in retirement – after a lifetime of employment - should remain a key goal of the nation's retirement system,” he said.
The plan sponsor sample represents major plans with more than $351 billion in plan assets and more than 3.4 million plan participants.
“Today, DC plan sponsors have a uniquely informed view of the ongoing evolution of the corporate retirement system as well as retirement itself, shaped by experience day-to-day with what's working in employee retirement planning Johnson. “Sponsors feel highly responsible for the retirement planning needs of their employees and – while many are concerned about workers' retirement planning and prospects – they also realize there are ways to make the DC system work even harder on participants' behalf.”
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Axiata Financial's goal is to ease our clients' reservations regarding investments in today's environment by incorporating in our recommendations some 'must have skills': flexibility, agility and precise risk management.