Employers are focusing on their employees’ financial wellness and retirement readiness in 2013, according to a survey of 425 employers (representing 11 million employees) conducted by Aon Hewitt.

Workers need 11 times their annual salary to have a financially secure retirement, but the average worker has a savings shortfall of 2.2 times their annual salary, reports Aon Hewitt. About 80% of surveyed employers plan to address this gap by making financial wellness a top priority this year. And 86% of sponsors said they would focus communications initiatives on helping employees evaluate and understand their retirement savings needs.

Also, plan design changes are in place or being considered to help employees manage their money when they retire. In-plan retirement income solutions are offered by 28% of sponsors, up from 16% a year earlier. These solutions include managed accounts with a drawdown feature, managed payout funds and annuities. Nearly one-third (30%) of employers who currently do not offer such solutions plan to do so this year.

Other key findings include:

  • The percentage of sponsors who plan to use social media to communicate with employees rose from 6% last year to 18% this year.
  • 52% of employers will use podcasts and 42% will use text messages to educate employees about their retirement benefits this year.

See the entire survey results

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Kmotion, Inc., P.O. Box 1456, Tualatin, OR 97062; www.kmotion.com
© 2013 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance, nor as the sole authority on any regulation, law, or ruling as it applies to a specific plan or situation. Plan sponsors should always consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.
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