2012 Hot Topics in Retirement - Aon

Employer Confidence in Program
Management and Prioritization
Confidence Level of Employers in E�ectively Managing Their
Retirement Program
Issues and Priorities in 2012
Retirement Program Issues
Competitive position of the plan
The influence of employee diversity and
inclusion on retirement benefit e�ectiveness
Employees’ understanding and knowledge of
the employer-sponsored resources they have
available
Employees taking accountability for their
own retirement success
The aging workforce and the impact
retirements could have on your business in
the next 5 to 10 years
Policies and procedures that appropriately
influence the patterns of employee retirements*
Employees retiring with su�cient retirement
assets
Employees’ ability to manage their retirement
income to last for the rest of their lifetime
(n ranges from 413 to 421)
*For example, phased retirement, early retirement subsidies
12 Aon Hewitt
The confidence employers have in their employees’ ability to retire with
su�cient assets fell o� sharply from 2011 to 2012. Last year, 30% of employers
felt “very confident” in their employees’ ability to retire with adequate income;
however, this year that percentage dropped to only 4%. In addition, in 2012
only 18% of employers feel very confident that workers will be able to manage
their income while in retirement, and only 10% of employers feel very
confident that their employees take accountability for their own retirement
success, down from 38% last year. Yet, in terms of prioritization, more than
half of respondents (52%) felt this was a high priority of the plan. Roughly
four in 10 (39%) continue to feel very confident in the competitive position
of their plan, which is consistent with prior years.
Smaller organizations (with fewer than 1,000 employees) are generally more
confident across nearly all types of retirement program issues.
Very
Confident
1
39%
18%
13%
10%
7%
Confidence Level
Not
Confident
at All
2 3 4 5 6
36% 18%
4%
32% 32% 12%
40% 33% 12%
23% 42% 19%
29% 37% 21%
3%
4%
2%
6%
6%
6% 25% 33% 22% 11%
4% 22% 35% 23% 15%
4% 14% 33% 28% 15%
0%
2%
0%
1%
0%
3%
3%
6%
High
Priority
1
48%
18%
60%
52%
36%
14%
44%
33%
Priority Level
Medium
Priority
2
41%
42%
36%
42%
41%
47%
46%
49%
Low
Priority
3
12%
41%
4%
7%
23%
39%
10%
18%