Employers are concerned about how their employees will fare in retirement, as well as talent retention and attraction. They shared the top reasons they continue to offer retirement plans, despite challenges posed by COVID:

To encourage employees to save for retirement (74 percent).
To help provide financial security to employees in retirement (70 percent).
To help retain current employees (60 percent).
To help employees have enough income in retirement to live comfortably (60 percent).

Half of employers are concerned that their employees are not planning enough to manage their savings and income in retirement. Just 16 percent of employers feel most of their employees are saving adequately for retirement.

Almost 40 percent of workers are concerned about outliving retirement savings.
Nearly half of workers say they either don't understand retirement income strategies or haven't decided on an approach.
However, 70 percent of workers say they are interested in investment options within an employer-sponsored retirement plan that includes a guaranteed lifetime income solution.

More than half of employers expressed a desire to make retirement income options available to plan participants.

Roughly 40 percent want to actively encourage plan participants to elect retirement income solutions.
More than 35 percent encourage retirement income solution utilization by as many plan participants as possible.

"Effective employee engagement can help workers prepare for retirement," Reddy said. "In addition to financial wellness education, we actively encourage the adoption of auto features, including plan re-enrollment, as well as retirement income solutions. Connecting workers with the right resources and plan features can help them recognize their options and feel more secure about their path forward."

Instant Insights /

Employer priority: Help employees with retirement planning through pandemic

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