ARLINGTON, Va., July 21, 2016 (GLOBE NEWSWIRE) -- U.S. employers are becoming increasingly concerned over their employees’ financial well-being, and they are planning to take action to help their employees retire in a timely manner, according to a new survey by Willis Towers Watson (NASDAQ:WLTW), a leading global advisory, broking and solutions company. In response, the survey found that a growing number of employers plan to shift resources toward benefit adequacy and retirement readiness over the next two years.
The Retirement Plan Governance Survey of more than 300 U.S. employers found nearly four in 10 employers (39%) that offer a defined benefit and defined contribution (DC) plan view their employees’ retirement readiness as a current risk. Even more — 44% — view it as a risk two years from now.
“Not surprisingly, retirement benefit adequacy and the financial fitness of their workers are growing concerns among employers,” said Dave Suchsland, senior retirement consultant at Willis Towers Watson. “This is particularly true among employers that offer only a DC plan. In fact, workers’ inability to retire in a timely fashion was identified as the top risk for nearly six in 10 of these plan sponsors. The ongoing shift to DC plans is now prompting employers to prioritize resources that promote retirement readiness.”
A majority of DC plan sponsors presently devote their top investment resources primarily to monitoring investment fees (74%) and manager performance (61%). However, employers are planning a greater focus on benefit adequacy and monitoring participant behavior moving forward. According to the survey, the percentage of DC plan sponsors that prioritize benefit adequacy will more than double in the next two years, from 18% to 38%.
“We are beginning to see governance committees adopt a more holistic view to DC oversight. They continue to review investments and plan fees, and they are also considering retirement readiness and how the program influences plan participants’ behavior to improve outcomes for them,” said Suchsland.
About the survey
The Willis Towers Watson U.S. Retirement Plan Governance Survey is based on responses from more than 300 U.S. retirement plan sponsors representing a wide range of industries. The survey, conducted in February and March 2016, examines current and evolving practices in four key areas of governance: risk, structure, strategy and measuring effectiveness.
About Willis Towers Watson
Willis Towers Watson (NASDAQ:WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 39,000 employees in more than 120 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.
Media contact Ed Emerman: +1 609 275 5162 firstname.lastname@example.org
Source:Willis Towers Watson Public Limited Company