Employers doubt workers' ability to plan for retirement
01/27/12According to a new survey by Aon Hewitt, a global human resources consulting and outsourcing business, employers are becoming less confident about their employees being able to adequately prepare for retirement.
Aon Hewitt surveyed more than 500 large companies in the United States, which represent more than 12 million employees, and discovered employers aren't confident in employees' ability to save for life after their career. This is resulting in employers assisting workers' efforts to rethink their retirement strategies.
"The stark drop in the confidence of employers is troubling," said Pamela Hess, director of Retirement Research at Aon Hewitt. "We've known for a while that workers weren't saving enough for retirement, but it seems that with continued tough economic times, employers are realizing just how dire the situation has become for much of their workforce. Fortunately, they're not sitting idly by - they're actively taking steps to help their employees get on a better path."
The survey determined that just 4 percent of employers are confident that their employees will retire with adequate income assets, which is down considerably from the 30 percent recorded in 2011.
With Americans looking for better ways to prepare for retirement, investing in life insurance and annuities is advisable. Unfortunately, according to a recent LIMRA study, only 39 percent of Americans reported having the opportunity to purchase life insurance in the past two years.
