A new report released today reveals an encouraging sign that employer confidence is rising and that it appears to be translating into a renewed commitment to retirement benefits for the first time since the recession began.
The results of the 12th Annual Transamerica Retirement Survey – conducted among a nationally representative sample of 743 U.S. employers by the non-profit Transamerica Center for Retirement Studies® – found that while retirement benefits and educational tools are more prevalent among large employers (500+ employees), small employers (10 to 499 employees) lag in comparison.
Underscoring a significant change from the year prior, 59 percent of employers expect their company’s financial situation to improve over the next 12 months (up from 49 percent) and almost half of employers expect the economy to improve over the next 12 months (up from 45 percent). Based on the study, employers are generally reporting higher levels of employment, with over half hiring additional employees in the last twelve months. This positive trend is more prominent with large companies where 69 percent hired workers compared to 54 percent of small companies. Additionally, fewer companies implemented layoffs or downsized in the last twelve months – 33 percent compared to 48 percent last year.
Renewed Commitment to Retirement Benefits
For the first time since the recession began, this rise in confidence is accompanied by an increase in enhancements to retirement benefits as well as intentions to reinstate certain benefits that had been suspended since the recession began in 2008. Although the percentage of employers offering matching contributions to their 401(k) or similar plan is consistent with last year’s survey (70 percent versus 69 percent the year prior) – the survey found an encouraging sign that 51 percent of companies that recently decreased or suspended the match plan to reinstate it within the next two years.
Please read more in the press release.
For the full survey results and for resources about retirement planning, visit www.transamericacenter.org.
About Transamerica Center for Retirement Studies®
The Transamerica Center for Retirement Studies® (“The Center”) is a non-profit, private foundation. The Center is funded by contributions from Transamerica Life Insurance Company (one of AEGON's companies in the United States) and its affiliates and may receive funds from unaffiliated third-parties.
