Posted in: Benefits, Employment, Health care, Special Report
More than half the employees responding to a recent survey said they’re ready to give up money they’re making now — in exchange for more secure retirement and healthcare benefits.
It’s not often you’ll find such a large number of people — 55% — willing to take a hit in the paycheck. That figure was up from 46% two years ago.
But that’s how deep the fear runs that future reductions in employer-supplied benefits are inevitable.
The recent survey by Towers Watson thoroughly examines how secure American workers feel about their retirement and health plans.
Of course, older workers who’ve seen their retirement accounts take a dive and home prices spiral downward are taking a much more critical look at how they’ll survive their golden years.
Turns out they’re not alone.
Younger workers also see the need to look at the big picture, and they’re willing to pay more now for a guaranteed retirement plan.
The driving force: 64% of the workers who responded to the survey said rising healthcare costs was the No. 1 reason they were concerned about retirement security.
HR pros hammering out company benefits might want to keep this type of information in mind — especially if it means more employees are willing to pay now for secure benefits down the road.
Other interesting stats from the Towers Watson Retirement Attitudes Survey:
- The willingness of under-40 employees with a defined benefit plan to pay for a guaranteed retirement went from 39% in 2009 to 66% in 2011
- 44% of employees fear reductions in retirement plans over the next two year; 63% of their younger counterparts share the same fear, and
- 73% of employees say they’re worried out-of-pocket and co-pay medical costs will go up in the next two years — compared with 67% in 2007.