Pension programs at the nation’s largest employers are expanding into day-to-day money management, according to a recently released survey by Aon Hewitt, the largest independent administrative services provider in the nation.
Nearly three out of every five major employers polled last fall told the company they plan to offer workers assistance this year in managing their daily expenses and helping them have enough money left over to save.
The study showed that it is becoming the norm for these businesses to provide online tools for plan participants to assist them in calculating how much money they will need each year in retirement. Sixty-three percent of the employers are already making the tools available and 56 percent of those who don’t are planning to in the year ahead.
Target-date funds are on track to make further inroads, with 79 percent of employers offering them and 36 percent of those who don’t considering adding them to their pension plan menu.
Focusing on the financial advisor offerings, close to half of the employers (44 percent) provide online access to advisors, while more than one-third (35 percent) facilitate the interaction of workers with third-party advisors through the phone, and nearly one-quarter (23 percent) allow for face-to-face meetings with them.
Nearly all employers (89%) are very or somewhat likely to discuss increasing
savings rates within the plan.
The survey was of 400 employers accounting for more than 10 million workers.
Click here for the full study.