Sixty-nine percent of employers believe that most of their employees could work to age 65 and still not save enough to meet their retirement needs, a disturbing finding given the vital societal role that employers play in helping workers save, plan, and prepare for retirement, according to a study released today by nonprofit Transamerica Center for Retirement Studies® (TCRS), All About Retirement: An Employer Survey.
As part of its 17th Annual Retirement Survey, TCRS interviewed more than 1,800 for-profit employers with five or more employees to understand their views on their employees’ future retirement. They were asked when and how they believe their employees envision retiring, the extent to which they have business practices to support them, and the current state of retirement benefits offered.
The survey findings reveal four opportunities in which employers can help improve retirement security among workers:
“With Generation Z’s coming of age, we will soon have five generations in the workforce, an exciting and extraordinary opportunity to foster innovation through inter-generational collaborations with exchanges of knowledge, experience, and ideas,” said Catherine Collinson, president of TCRS. Most employers (71 percent) consider themselves to be “aging-friendly” by offering opportunities, work arrangements, and training and tools for employees of all ages to be successful. However, the survey findings show that some employers may not be as aging-friendly as they think they are.
The survey examined employers’ perceptions of the most common reasons why employees recently retired. It’s not surprising that employers’ most frequently cited reasons include age (47 percent), financial ability (35 percent), health issues (32 percent) and family responsibilities (22 percent). However, a noteworthy 27 percent of employers say their employees retired as a result of one or more employment-related reasons, including organizational changes (15 percent), were laid off or terminated (12 percent), and/or took a retirement buyout/incentive (11 percent). Note: these findings vary dramatically by company size, with large companies of 500 or more employees (46 percent) and medium-sized companies with 100 to 499 employees (35 percent) being more likely than small companies with 5 to 99 employees (23 percent) to cite employment-related reasons.
“Employers can affirm their aging-friendliness by adopting inclusive practices, programs and benefits that recognize age with other demographic factors,” said Collinson.