Apr 24: BEST FROM THE BLOGOSPHERE
April 24, 2023
98 per cent of workers say employers should offer a workplace pension
It’s unanimous! Or about as close as you can get to that.
An impressive 98 per cent of U.S. workers polled by Vestwell, Inc. say “it’s important for their employer to provide a retirement savings plan,” reports Benefits Canada.
The survey also found that “nearly half (47 per cent) of workers listed retirement as their number one savings goal,” the magazine reports, adding that paying off debt was seen as the top priority by 34 per cent of respondents.
There were some other interesting survey findings, Benefits Canada adds.
“While two-fifths (40 per cent) of employees said a higher salary would encourage them to contribute to a workplace retirement plan, others cited a higher employer-matching contribution (28 per cent), better financial education (eight per cent) and paying off personal debt (six per cent) as motivating factors. Just 12 per cent said nothing would motivate them and six per cent cited other motivations,” the magazine reports.
The vast majority of respondents (91 per cent) wanted employers to offer a program that offered “a guaranteed lifetime income stream, such as a deferred annuity.” Only 40 per cent of employers wanted their retirement programs to deliver guaranteed income.
It would seem that saving on their own is seen as difficult by American workers. Seventy-six per cent of those surveyed “reported some level of stress regarding their financial situation, including two-thirds (66 per cent) who agreed that inflation and market volatility has increased their previous levels of financial stress,” Benefits Canada reports.
Despite this, 48 per cent of employees agree they should be saving more.
Finally, 90 per cent of employees wanted their employers to deliver some sort of “retirement education,” and more than half (59 per cent) “agreed or strongly agreed that companies should have responded to the `Great Resignation’ with a more hands-on approach to providing retirement information,” the article notes.
It is very encouraging to see a survey report that retirement saving is seen as a top priority, and that employers should offer some sort of retirement savings program. This seems to us like a cry for help from workers on the whole retirement savings issue; it may be too daunting and complex for people to save on their own.
It’s also interesting that most respondents want some sort of guarantee around the income they get from their workplace retirement savings program. If your workplace retirement savings program doesn’t offer guaranteed income on retirement, but a lump sum, you can achieve a guaranteed income stream through the purchase of an annuity with some or all of the savings.
If you don’t have a workplace retirement savings program, the Saskatchewan Pension Plan may be able to provide some help. You can join SPP as an individual — the plan is open to any Canadian with registered retirement savings plan room. SPP will invest your savings at a low cost in a professionally managed, pooled fund, and at retirement your income options include choosing from a stable of lifetime annuities.
Alternatively, your employer can choose to offer SPP as a retirement benefit. If there’s interest at your organization, here’s where you can find out more details.
Join the Wealthcare Revolution – follow SPP on Facebook!
Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.