How Companies Are Also Flunking Retirement Planning

Willis Towers Watson's 2018 Longer Working Careers Survey of 143 large U.S. companies found just 10 percent offer workers a formal phased-retirement program that lets them reduce their hours or responsibilities prior to full retirement, reports CBS News . Furthermore, fewer than one in three employers gave workers the option to work part-time or switch to a less demanding job. A 2017 U.S. Government Accountability Office report determined employers generally consider phased retirement plans to be positive for business, as they allow both the company and the employee to adjust over time. Employers can plan better because they know ahead of time when a worker plans to depart, and they can arrange for experienced employees to mentor and transfer their specialized knowledge to younger ones. Eighty-three percent of the companies Willis Towers Watson polled admitted that significant numbers of their workers are approaching retirement age, with 54 percent believing the loss of talent will be more substantial than other labor market risks over the next five years. However, Transamerica Institute Chief Executive Catherine Collinson warns employers may not be fully aware of how many people may need to keep working because they have not saved enough for retirement.