The levels of retirement savings have increased since 2007 according to the Transamerica Center for Retirement Studies’ 13th Annual Retirement Survey report, Weathering the Economic Storm: Retirement Plans in the U.S., 2007-2012. Boomers have increased their savings by 33%, Generation X by 30%, and Echo Boomers (Baby Boomers children) have increased their retirement savings by 77%.
This is good news, especially considering the economy between 2007 and 2012. Workers were being smart and continuing to set funds aside for their futures. Unfortunately, there is bad news as well. The amounts people are saving, although they have increased, are just not enough to maintain living expenses throughout the length of retirement. The survey found that the total median savings for baby boomers is $99,320. Baby boomers are now between the ages of about 48 and 66. They are either at retirement age or getting close. Many are planning to continue working well into their retirement years. Can you imagine trying to live even just ten years on $100,000? That’s just $10,000 a year.
Why should this matter to us as human resource and benefit professionals? I guess it doesn’t have to, but it should. You can help set employees up for a great retirement, or you can ignore it and hope they find the right path themselves. Many of your companies are offering some sort of retirement savings, most likely a 401(k), so the hard part is done. You can help this company benefit become more meaningful. Here are a few ideas to maximize your 401(k) benefit offerings:
I believe that HR and benefits professionals have an opportunity to really make a difference in the lives of their employees by helping them understand the importance of saving for retirement. How are you getting employees to save for retirement?
Originally posted at http://uecubenefit.uecu.org/