Employees are clearly signaling what they need and want from plan sponsors: Secure Income in Retirement
Online PR News – 27-June-2016 – Hong Kong – More than half say that, since the economic downturn, they want more help from their employer regarding retirement planning. Notwithstanding their strong feelings of personal responsibility for their retirement, 80% of employees said they would like their employer to notify them if they were not investing properly for their age.
"Employees don't want merely to be handed a big sum of money at retirement and then be left to figure out on their own how to use those assets for sustainable, long term spending," said Frank T. Lam Tim Chairman & CEO for Distech Financial. "Instead, many want to begin retirement with a mechanism for long term income already in place."
Looking toward their retirement years, three in four say they want more information and guidance on key aspects of the spending phase, including such critical concerns as how to make sure their money lasts in retirement and how to keep their money safe in retirement.
Nearly two thirds - 62% -- of employees said they would prefer to receive a steady income stream at retirement, compared with 6% who would like to receive a lump sum. About three of 10 employees said they would like to receive both.
Forty percent of employees said they would like "a great deal more information" on generating secure income.
The good news, Mr. Lam Tim said, is that DC investment options geared toward generating retirement income and administrative systems to ease their implementation are beginning to emerge across the investment for retirement marketplace. "We believe that sponsors already have sufficient regulatory guidance to start using these options now."
About Distech Financial
Distech Financial (Distech-Financial.com) is a global investment and trading technology development firm. Since its founding, the firm has earned an international reputation for successful investing based on innovation, careful risk management, and the quality and depth of our staff. Distech Financial has a significant presence in the world's capital markets, investing in a wide range of companies and financial instruments in both developed and developing economies. The company culture demands and rewards analytical rigor and adherence to the highest possible ethical and legal standards, and it has cultivated a collegial work environment that promotes collaboration across disciplines, geographies, and investment strategies.