Thursday, November 30, 2006

Role of Employers in Discussing Retirement Options with Employees

In an article in Employee Benefit News, Lydell C. Bridgeford discusses the pros and cons about how employers talk about retirement education programs, especially ones addressing the financial pros and cons to working past age 62 to 67. While older workers thinking about working past the required retirement age must balance the rewards with the penalties and need information about the costs and benefits, there is a real question about whether employers should become more active in offering education programs on delayed retirement.
[John] Young [ executive vice president of sales and marketing at Michigan-based Freedom One Financial Group] observes that employers tend to leave retirement financial education up to outside professionals whom workers have already chosen, or a potential service provider of their 401(k) program that includes retirement education planning as part of the basic service.
However, it can be in the employer's interest to help with the education, especailly as younger workers become relatively more scarce and employers increasingly want to retain older workers.

Source: Employee Benefit News "Educating workers about delayed retirement" (November 2006)

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