Would You Pay More for a Better Employee Retirement Plan?
If that trade-off sounds worthwhile, rest assured you are not the only one who feels that way. Sixty-six percent of the working Americans surveyed late last year by consulting firm Willis Towers Watson said that they would defer a greater percentage of salary than they currently do if their potential retirement benefits were upgraded, and 61% said that they would increase their plan contributions if they were offered a guaranteed benefit, in the manner of a traditional pension.
The quality of employer-sponsored retirement plans appeared to matter more to the respondents than the quality of group health benefits, because just 36% of them indicated that they would trade more of their pay for an improved workplace health care plan. Retirement benefits even mattered more to them than time off: only 58% said that they would surrender equivalent compensation in exchange for more personal and vacation time. One finding from the survey also amounted to a memo to American companies: 43% of the respondents noted that their workplace retirement plans did not give them enough options or flexibility.1
Staying Put After 60 Sounds Good
Every year, there are annual lists of the “best places to retire.” Today’s seniors may be ignoring them. One new study identifies “home sweet home” as the most popular retirement destination of all.
United Income, a money management firm, just released an in-depth analysis of federal government and think-tank data titled The State of Retirees. It finds that older Americans are less transitory than they once were: since 1980, the number of retirees who have moved within the past five years has shrunk from 23% to 15%. Just 1% of moving retiree households in 2015 relocated to another state. Retirees are also more suburban than they were in the 21st century: about half live in such communities, a 40% increase over 40 years ago. As noted retirement researcher (and United Income CEO) Matt Fellowes notes in the study, “[the] retired population is likely choosing to stay near friends, family, and the cultural attractions, like sporting teams and theaters, that they have come to know well.” Aging in place feels easier and probably seems cheaper.2
On the BRIGHT SIDE
In polling 9,760 retiree households, the BlackRock Retirement Institute and Employee Benefit Research Institute recently found that retirees of “medium” wealth had an average of 77% of their non-housing assets left 18 years into retirement.3
Kent Butcher may be reached at 918-747-5585 or email@example.com
1 – fool.com/investing/2018/05/10/survey-most-us-workers-would-pay-more-for-better-r.aspx [5/10/18]
2 – nextavenue.org/retirees-never-better-united-income-report/ [5/3/18]
3 – chicagotribune.com/business/ct-biz-retirees-spending-20180102-story.html [1/2/18]
4 – tinyurl.com/ycsm9ubj [4/18/18]
This material was adapted from MarketingPro, Inc. content and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.
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