Benefits managers report their organizations simply do not doenough to help employees make critical decisions at the point ofretirement, according to a national survey of U.S. benefitsdirectors commissioned by Transamerica Retirement Management. Butthey do concede organizations share - almost equally with theindividual - the responsibility to support the individualthrough retirement.

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

  • An overwhelming majority of respondents said theirorganizations do not sufficiently prepare employees to successfullymanage their own financial resources in retirement. Eightypercent are unsure or disagree that their organization sufficientlyprepares employees to successfully manage their financialresources.
  • Benefits directors agree that the organization sharesthe responsibility to support the individual in retirement – almostequally – with the individual. Respondents said thatemployees, organizations and government shoulder 41 percent, 37percent and 21 percent of the responsibility, respectively.
  • The vast majority of benefits directors surveyed lackedconfidence in how capable employees are at making sound decisionsabout retirement preparation. Thirty-five percent ratedemployees as either “somewhat not capable” or “not capable,” while45 percent rated employees’ capabilities as “neutral.”

“These survey findings help debunk a myth that just providingemployees with more retirement-related information or educationwill generate better retirement outcomes,” said Phil Eckman, chiefexecutive officer, Transamerica Retirement Management.

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

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