US - Just 20% of US companies are modifying their retirement plan designs, despite the mounting challenges faced by employees, an Aon Consulting study has found.
Increased life expectancy and multiple job changes meant it was crucial workers started saving for retirement much earlier in life said the study, which surveyed 1071 employers.
While 76% of companies were reported to have said they believed retirement education to be very important, only 1% percent regularly communicate retirement planning information to employees, the survey found.
Just 19% of employers said they felt confident their workers truly understood how to invest in plan assets, and 39% said they believed half or more of their workforce would not have enough savings to retire between the ages of 62 and 65.
Companies in the central and south east regions were found to be less optimistic, with 43% and 41% respectively believing the majority of their employees would not retire at a reasonable age, based on savings habits
Bill Crawford, senior vice president with Aon Consulting said companies needed to give employees specific information about how much they should be saving for retirement.
Companies need to ensure this information answers the basic questions all employees ask, such as: How much do I need? How much will I have? Am I on track?” he said.
By Lisa Haines
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Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point