PLANADVISER - January/February 2019 - 19

Ahead of the Retirement Wave
Only one-quarter of employers say they effectively help workers retire
WILLIS Towers Watson published a
white paper, " Working Late: Managing
the wave of U.S. retirements, " which
discusses employers' need to better
understand older employees' plans for
when and how to retire.
" Older workers can be some of
employers' most important employees,
valued for their knowledge of industries,
companies and customers, and their
contributions to organizations' continuity
and future success, " the paper
says. " [But] demographics of the U.S.
working population illustrate that the
pace of their departures is increasing,
as 83% of employers report a significant
number of employees at or approaching
traditional retirement age. "
... just over 80%
of organizations
acknowledge the
importance of their
older workers and
of managing the
retirement process.
According to the research firm, just
over 80% of organizations acknowledge
the importance of their older workers
and of managing the retirement
process. Yet, only about half believe
they understand the process well, and
just one-quarter say they have found
an effective approach.
" There are also important disparities
in perception-between management's
view of when pending retirements
will occur and the plans of
the workers, " the white paper says.
" Employers are concerned both
about increasing retirements and the
resulting loss of seasoned employees'
skill and experience, as well as rising
Participation rate
Deferral rate
Source: Plan Sponsor Council of America
Rude Awakening for Retirees
Thirty-nine percent of retirees say they
spend more than they had anticipated.
Source: Global Atlantic Financial Group
planadviser.com January-February 2019 | 17
numbers of delayed departures leading
to higher salary and benefit costs. "
For
that
social and financial well-being.
When asked why managing the
reason, Willis Towers
Watson wrote, firms are taking a new
look at retirement patterns, developing
new strategies for balancing the
supply and demand of older workers'
talent, and integrating their workplace
programs to enhance physical,
TALKING POINTS
How Employers Help Workers
Transition Into Retirement
6%
Provide financial
counseling
5%
Offer seminars
on the subject
Source: Transamerica Center for Retirement Studies
How Do Plans Measure Success?
90.8%
75.8%
57.5%
Average account
balance
34%
Income
replacement
ratio
5%
Offer part-time
hours
5%
Accommodate
flexible work
schedules
orderly retirement of employees is
important, 83% of the employers
surveyed ranked " orderly transfer
of knowledge of the organization " as
their top concern, while 60% pointed
to " concerns over workforce productivity. "
-John Manganaro
http://www.planadviserdigital.com/planadviser/january_february_2019/TrackLink.action?pageName=17&exitLink=http%3A%2F%2Fplanadviser.com
PLANADVISER - January/February 2019

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