Willis Towers Watson reveals that employers plan to boost retirement benefits this year

If employers want to keep up with the competition for new talent, their retirement plans need to keep pace, too.

More than a third of employers see their retirement plan as a key retention and attraction tool, and 75% plan to enhance their defined contribution retirement plan offerings to better support the financial needs of their current employees, and remain competitive to potential recruits, according to new research by Willis Towers Watson.

“Employees want more help from their employer with planning for a financially secure retirement,” Dave Amendola, senior director of retirement at WTW, said in a release. “Employers that enhance their DC plans can better meet their employees’ needs while differentiating themselves as a true employer of choice.”

Eighty-two percent of employers plan to focus on changing and enhancing the employee experience when engaging with their retirement plans. Almost all employers plan to offer personalized one-on-one support, and 91% plan to boost their digital tools to help employees budget and plan their contributions, the survey found.

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With retirement an increasingly lofty goal for many, employers are recognizing the role they play in helping their employees get on the right financial foot. Beyond their long-term goals, employers want to help employees utilize their retirement contributions to reduce their student loan debt, build an emergency fund, or pad their health savings accounts, the WTW research found.

“Employer interest in helping employees address both their short- and long-term financial concerns has never been greater,” Alexa Nerdrum, managing director of retirement at WTW said in the release. “Employers are refreshing their plans to give employees both the opportunity to save more for retirement and the flexibility to use both their personal and employer contributions in innovative ways to manage their financial needs.”

Read more: Employees want financial wellness more than they want PTO

The time has never been better to reassess the role of retirement plans to address their full financial picture. A study by Prudential found that a third of employees would reconsider leaving their job if offered better retirement benefits, and better income and benefits topped the list for both men and women as a top value when looking for a new employer.

“Employees prioritize flexibility and choice in their benefit package and view retirement benefits as a key reason to join or stay with a company,” Amendola said. “Employers have a golden opportunity to leverage their plans and gain an advantage in attracting and keeping talent.”