98 per cent of workers say employers should offer a workplace pension

It’s unanimous! Or about as close as you can get to that.

An impressive 98 per cent of U.S. workers polled by Vestwell, Inc. say “it’s important for their employer to provide a retirement savings plan,” reports Benefits Canada.

The survey also found that “nearly half (47 per cent) of workers listed retirement as their number one savings goal,” the magazine reports, adding that paying off debt was seen as the top priority by 34 per cent of respondents.

There were some other interesting survey findings, Benefits Canada adds.

“While two-fifths (40 per cent) of employees said a higher salary would encourage them to contribute to a workplace retirement plan, others cited a higher employer-matching contribution (28 per cent), better financial education (eight per cent) and paying off personal debt (six per cent) as motivating factors. Just 12 per cent said nothing would motivate them and six per cent cited other motivations,” the magazine reports.

The vast majority of respondents (91 per cent) wanted employers to offer a program that offered “a guaranteed lifetime income stream, such as a deferred annuity.” Only 40 per cent of employers wanted their retirement programs to deliver guaranteed income.

It would seem that saving on their own is seen as difficult by American workers. Seventy-six per cent of those surveyed “reported some level of stress regarding their financial situation, including two-thirds (66 per cent) who agreed that inflation and market volatility has increased their previous levels of financial stress,” Benefits Canada reports.

Despite this, 48 per cent of employees agree they should be saving more.

Finally, 90 per cent of employees wanted their employers to deliver some sort of “retirement education,” and more than half (59 per cent) “agreed or strongly agreed that companies should have responded to the `Great Resignation’ with a more hands-on approach to providing retirement information,” the article notes.

It is very encouraging to see a survey report that retirement saving is seen as a top priority, and that employers should offer some sort of retirement savings program. This seems to us like a cry for help from workers on the whole retirement savings issue; it may be too daunting and complex for people to save on their own.

It’s also interesting that most respondents want some sort of guarantee around the income they get from their workplace retirement savings program. If your workplace retirement savings program doesn’t offer guaranteed income on retirement, but a lump sum, you can achieve a guaranteed income stream through the purchase of an annuity with some or all of the savings.

If you don’t have a workplace retirement savings program, the Saskatchewan Pension Plan may be able to provide some help. You can join SPP as an individual — the plan is open to any Canadian with registered retirement savings plan room. SPP will invest your savings at a low cost in a professionally managed, pooled fund, and at retirement your income options include choosing from a stable of lifetime annuities.

Alternatively, your employer can choose to offer SPP as a retirement benefit. If there’s interest at your organization, here’s where you can find out more details.

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When star quarterback Tom Brady announced his retirement in the offseason – and then “unretired” soon afterwards, resuming his career – he was probably not aware of the fact that he’s a trendsetter.

More and more of us are “unretiring,” reports Edward Jones . “’Unretirement’ represents a growing trend among Canadians living in and approaching retirement,” an article on the firm’s website reports.  Citing recent Age Wave research, the article notes “33 per cent of recent retirees struggle to find a sense of purpose in retirement with new-found free time. Most Baby Boomers want to be more active, engaged, exploratory and purposeful in retirement than their parents and grandparents.”

So, for some of these folks, this leads to a desire to return to work, the article notes.

“When retirees stop working, it can create a void, often more social than financial. When asked what they miss most about their work life, 39 per cent of retirees say it’s the people and social stimulation, with only 22 per cent saying it’s the pay. The loss of social connection can lead to harmful isolation,” the article notes.

Okay, missing the work colleagues and all the social interactions can be part of it. Another part of it can be not having enough money in retirement, reports The Express.

“Given that living costs are rising and pay growth is pretty strong too, we might expect to see more people coming back to work through the winter and into the new year, particularly with vacancies so high and with so many employers keen to recruit,” Tony Wilson of the Institute for Employment Studies tells The Express.

The latest U.K. data finds that one in eight pension-aged Brits, a total of 1.46 million pensioners, are “in work,” with those over 65 being able “to claim a state pension while still working.” A further six per cent of current retirees are said to be thinking of making a return to work “to top up their pension income,” the article notes.

Investment News, looking at the U.S. market, says it may also simply be the great number of unfilled jobs out there that is leading to older workers being “actively recruited” for a return to work.

“We need older workers to stave off inflation and get the economy back on track,” states demographer Bradley Schurman in the article. “They are a key ingredient to solving the massive imbalance in the demand and supply of labour, which has created the ideal environment for the Great Resignation to thrive and is a contributing factor to increasing prices.”

The article makes the point that the waves of resignations by younger workers in the latter stages of the pandemic crisis led to job openings not seen since the Second World War.

“Today’s employment pictures looks a lot less like the pre-pandemic years and a lot more like those during the post-World War II, when America relied on older workers to fuel growth,” states Schurman in the article.

So, putting this all together, there are three factors that may be driving the “unretirement” trend. First, some older folks miss being at work and interacting with colleagues. Second, many retirees find (particularly with high inflation on the upswing) that retirement isn’t as affordable as they thought – so they go back to work due to income needs. The third idea expressed here is that the Great Resignation has created vacancies, and recruiters are looking to retired, experienced workers to plug employment gaps.

It’s an interesting phenomenon, and certainly is not something we saw when our parents retired. Typically, they left at age 65 and “fully retired,” with most never working for wages ever again.

Whether or not you become an “unretiree” one day, you’ll still want to have some retirement savings in your piggy bank. If you don’t have a pension plan through your workplace or if your workplace wants to introduce a pension plan, the Saskatchewan Pension Plan may be worth a look. This open defined contribution plan is available to anyone with registered retirement savings plan room. SPP will carefully invest any contributions you make and can help you turn them into retirement income when you finally put down the hammer for the last time. Check them out today!

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