Only 16 percent of employers are “very confident” that their employees will be able to achieve a financially secure retirement, according to a study released today, Striking Similarities and Disconcerting Disconnects: Employers, Workers, and Retirement Security, by nonprofit Transamerica Center for Retirement Studies (TCRS). As alarming as this might be, particularly given the important role of employers, the survey finding is consistent with the 18 percent of workers who are “very confident” that they will be able to fully retire with a comfortable lifestyle.
As part of its 18th Annual Retirement Survey, TCRS surveyed 1,825 employers of for-profit companies with five or more employees to learn how they are helping their employees prepare for retirement. The study also provides context by comparing the employer survey findings with TCRS’ survey of 6,372 workers.
Pervasive Disconnects Between Employers and Workers Re: Retirement
“Today, people have the potential to live longer than any other time in history. Many workers now want and need to extend their working lives to financially prepare for longer retirements – but they need support from their employers which they are not yet getting,” said Catherine Collinson, CEO and president of Transamerica Institute and TCRS.
The survey findings illustrate ways in which employers are out of sync with workers in their perceptions and business practices. Key findings include:
- Many Workers Plan to Work Past Age 65, but Will Their Employers Support Them? Eighty-two percent of employers agree their company is supportive of its employees working past 65.” Only 72 percent of workers agree that their employer is supportive.
- When Is a Person “Too Old” to Work? Almost two-thirds of employers (65 percent) say “it depends on the person,” compared to 54 percent of workers. Among those who provided a specific age, employers consider age 70 (median) “too old” to work, a finding that is younger than workers at age 75 (median).
- Aging-Friendly? Maybe. D & I Policy Statement? Unlikely. Most employers (70 percent) consider their companies to be “aging friendly” by offering opportunities, work arrangements, and training and tools needed for employees of all ages to be successful in their current role or contribution to the company. In comparison, only 56 percent of workers consider their employers to be “aging friendly.” Of further note, just 23 percent of employers have adopted a formal diversity and inclusion policy statement that specifically includes age among other commonly referenced demographic characteristics.
- Few Employers Offer a Formal Phased Retirement Program. Only 20 percent of employers offer a formal phased retirement program with specific provisions and requirements for employees who want to transition into retirement. In contrast, 47 percent of workers are envisioning a phased transition by reducing work hours (30 percent) or working in a different capacity that is less demanding and/or brings greater personal satisfaction (17 percent).
Read more at PRNewswire.