Helping Employees Plan for Retirement Can Be a Win-Win-Win

Kristen Borrego, Outsourced Consulting Services Kristen Borrego 0023

Retirement is fast becoming the number-two employee benefit concern after healthcare. Employees value a “good retirement plan” as the most important reward feature after base salary. However, nearly three-quarters of near-retirees say they are concerned about their readiness for retirement. Even with the attention directed at retirement these days, here is a question you may not have considered, “Should your organization help employees plan for retirement?”

Increasingly, employers are convinced they should do more to help employees achieve successful retirement. This help goes beyond the financial considerations we typically associate with “retirement readiness” to include lifestyle advice. The complexity of retirement readiness seems to grow each year. Employees who already lead busy lives often cannot take the time to answer their accumulating questions. Employers have
resources to help to get the conversation started.

Why should employers help employees plan for retirement? Some have said, simply because it is the right thing to do. Certainly, and a Mercer study claims that employers taking a proactive focus on retirement strategies gain a competitive advantage. By offering retirement help to employees, employers can maintain productivity and reputation while boosting employee engagement and loyalty. Employers can also attract upcoming generations who are seeking employers who practice corporate social responsibility, among other intangible rewards of company culture. Employers can also benefit by learning when employees are thinking of retiring. Pragmatically, such advance knowledge assists in managing the inevitable transition of roles in your organization.

Employers’ retirement readiness increases the flexibility and effectiveness of each stakeholder—your company, the retiree, and the subsequent generations you are looking to attract and retain. Contact us to learn how we can collaborate with you on your retirement transitions at cts@msec.org or call 800.884.1328.