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With growing confidence, employers reinstate retirement benefits and plans

Posted on July 15th, 2011 Read time: 1 minutes

As the economy continues to recover, albeit slowly, businesses are growing increasingly comfortable with reinstating and boosting employee benefits. One category that's especially targeted by companies' human resources administration is retirement planning.

According to a survey from insurance provider Transamerica, 51 percent of businesses who previously decreased or suspended 401(k) match plans – in which employers contribute the same sum as workers – plan to begin offering the program again within the next two years.

Furthermore, 85 percent of respondents believe 401(k) plans are critical to attracting employees, as the same share of respondents said employees consider retirement benefits to be important.

"As we continue to emerge from the recession, employers can attract and retain the best employees by offering competitive benefits packages, while at the same time making a positive impact on their employees’ retirement outlook," said Catherine Collinson, president of the Transamerica Center for Retirement Studies.

A separate study from MetLife found retirement planning will become more important in coming years. Thirty percent of respondents said they've raised their retirement age, which could spur companies to seek outsource HR services to help manage the influx. 

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