The Growing Importance of Workplace Retirement Benefits
Written by: Lance Reising
Here at Investors, we are well aware that CFO’s and financial officers have lots of issues about which to be concerned, and retirement plans are not necessarily at the top of the to-do list. However, in today’s labor market employees are increasingly focused on retirement, and therefore, employers should be too.
We have seen this in our own experience as we have helped enhance existing retirement plans and have established startup plans for employers as well.
A recent article in planadviser.com highlighted findings from surveys of plan sponsors by Voya, Ubiquity, and T. Rowe Price. They all point to the fact that retirement plans provided by employers are still vital for attracting and retaining top talent.
A few highlights from the article and the studies follow:
· 60% of American workers are more likely to stay with their employer if the job includes an employer-sponsored retirement plan.
· Retirement benefits were a top three draw for employees, ranking just below a competitive salary (64%) and flexible work hours (63%), according to the October survey by Voya of about 1,000 U.S. workers aged 18 or above.
· U.S. job openings rose in September from the prior month despite volatile markets and rising inflation, with demand outpacing the number of unemployed people looking for work, according to the latest data from the U.S. Bureau of Labor Statistics.
· About two-thirds of the firms T. Rowe Price surveyed cited talent retention and acquisition as a top concern they want to address.
· About 68% of workers surveyed by Voya say they have plans to save for retirement next year, with 79% agreeing that sticking to long-term investment during a volatile market is important.
Perhaps a quick review of how your plan is, or is not, working would be a good idea. As retirement plan specialists we are able to do a quick review of your plan with little legwork on your part on a complementary basis. We would love to hear from you.