Source: Aon Hewitt, 2012
Aon Hewitt received survey responses from more than 500 employers to determine their current and future retirement benefits strategy….
Employer confidence at an all-time low:
– 4% of respondents are very confident their employees will retire with sufficient retirement assets, down from 30% in 2011
– 10% of plan sponsors feel very confident that their employees will take accountability for their own retirement success
– 18% of employers feel very confident that workers will be able to manage their income during retirement
Plan sponsors’ slow movement from defined benefit plans:
– 23% of employers provide an ongoing defined benefit plan with benefit accruals to new employees
– 59% of employers carry a pension liability
Sixty-one percent of respondents provide some type of postretirement medical coverage to their current or future retirees. Many of these plans are now focused on providing benefits only to current retirees or currently active employees and not to future hires. While 85% of plans older some subsidy to retirees and 98% provide access to retiree medical coverage, these numbers drop to 23% and 60%, respectively, for future hires.