I know you’d never be able to tell it from their savings rates, but your employees actually are quite happy with their retirement plan.
A new Watson Wyatt survey finds that 54% of employees are satisfied with their company’s retirement program, and 29% even admit that they wouldn’t save for retirement without it.
“The economic crisis has made it clear that retirement is something workers cannot take for granted,” says Jamie Knopping, WW senior retirement consultant. “And with employees’ heightened attention to their future, employers have a golden opportunity to educate workers on the benefits of their retirement plans — whether it is the value of a guaranteed flow of retirement income from a defined benefit pension plan or the responsibility of saving and choosing investments in a 401(k).”
Understandably, employees with defined benefit plans are satisfied (62%) with their retirement plan compared to defined contribution plan participants (51%). But all the same, folks are happy – and you can’t say that about much these days. So with that in mind, I wouldn’t go tinkering with your plans – freezing matching contributions or the plan altogether.
“In the current environment, employees are beginning to rethink the cost-benefit trade-off for retirement. And for many, that means a greater emphasis on financial security and flexibility than before,” says David Speier, WW senior retirement consultant.
