Employers and Employees Take Wait-and-See Approach to Retirement

Many employees are waiting for an economic recovery before moving forward with retirement, and employers are taking the same attitude with retirement program changes, according to Aon Consulting.

The company surveyed 1,313 employers nationwide in its 2009 Benefits & Talent Survey, and found that more than 90% are not changing their retirement programs, either in terms of benefits or management.

Similarly, 87% of respondents said employees are delaying retirement due to economic conditions. What’s more, one-third of employers said less than 70% of their employees are enrolled in their defined contribution plans, with the majority (67%) saying they believe workers are not enrolled because they can’t afford it.

Meanwhile, 38% of these employers believe employees have little knowledge of the funds needed for retirement, and 52% said employees have only some idea of what’s needed to retire with enough funds. Just 8% believe their employees have a strong understanding of the funds needed in retirement.

Source: Aon Consulting, aon.com.