Benefits managers report their organizations simply do not do enough to help employees make critical decisions at the point of retirement, according to a national survey of U.S. benefits directors commissioned by Transamerica Retirement Management. But they do concede organizations share - almost equally with the individual - the responsibility to support the individual through retirement.

More than 400 benefits-program decision makers weighed in on the topic of retirement transition. Transamerica reports the survey uncovered a high level of concern:

An overwhelming majority of respondents said their organizations do not sufficiently prepare employees to successfully manage their own financial resources in retirement. Eighty percent are unsure or disagree that their organization sufficiently prepares employees to successfully manage their financial resources.
Benefits directors agree that the organization shares the responsibility to support the individual in retirement – almost equally – with the individual. Respondents said that employees, organizations and government shoulder 41 percent, 37 percent and 21 percent of the responsibility, respectively.
The vast majority of benefits directors surveyed lacked confidence in how capable employees are at making sound decisions about retirement preparation. Thirty-five percent rated employees as either “somewhat not capable” or “not capable,” while 45 percent rated employees’ capabilities as “neutral.”

“These survey findings help debunk a myth that just providing employees with more retirement-related information or education will generate better retirement outcomes,” said Phil Eckman, chief executive officer, Transamerica Retirement Management.

“For decades, employers have devoted a wide range of retirement resources, matching retirement plan contributions, employee-education efforts, and the like, toward the goal of helping their employees enjoy positive retirement lifestyles,” Eckman said. “Add in the immense resources of the Internet and today’s employees should, theoretically, be better equipped than ever to make good decisions. But the nation’s benefits directors are telling us the opposite.”

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Benefits managers admit not doing enough for retirees

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