American Workers Seek Redesigned Retirement Plans
New data from Prudential suggest it’s time to redefine retirement programs.
“Protect people from their worst enemy: themselves,” offers one respondent.
January 26, 2010 12:05 PM Eastern Time
NEWARK, N.J.--(EON: Enhanced Online News)--In the wake of the most severe economic crisis since the Great Depression, th
majority of American workers believe it’s time to create a new and improved model for workplace-provided retirement programs,
survey by Prudential Financial(NYSE: PRU).
Prudential’s sixth “Workplace Report on Retirement Planning” revealed that 84 percent of Americans would eagerly embrace a fres
structure of their workplace retirement plans—especially plans with “autopilot” features—spurred in large part by the recent econo
by the ongoing struggles Americans face in making the right decisions about how best to manage their programs.
“Our survey found that the losses sustained by American workers during the past two years really drove home the inherent limitation
retirement-plan design,” said Christine Marcks, president of Prudential Retirement.
“We’ve known for a long time that Americans aren’t saving enough for retirement. And we’ve known that participation rates aren’t
be to ensure retirement security for American workers. Now, with the effects of the economic crisis still front-and-center in people’
seeing increased awareness of the importance of workplace-provided plans, and we’re witnessing increased concern and uncertaint
about their ability to make sound, appropriate, and informed decisions,” she added.
“The net result is a resounding call to re-evaluate defined contribution plans, to enhance current plan design, and to redefine retireme
help build long-term financial security for American workers,” added Marcks.
The answer, said survey participants, lies in fully automating defined contribution programs, restructuring current plan design to incor
plan features such as automatic enrollment, automatic savings default rates, au