Recession Has Taken Toll on Employee Retirement and Benefits

More than half (52%) of respondents to a Towers Watson survey said the percentage of their employees working past their desired retirement age is higher than it was before the financial crisis.

Nearly one-third (31%) said they expect that percentage will be even higher next year, according to a press release.

In addition, 30% of companies reported employees have on average reduced their contributions to 401(k) plans from pre-financial crisis levels, and 51% have seen an increase in employees’ hardship withdrawals from pre-financial crisis levels. Almost half (48%) of U.S. respondents said employees had shifted 401(k) plan allocations out of equities; however, 37% expect employees to shift back toward equities a year from now, the survey found.

Thirty-two percent of companies reported that their employees’ cost of health care coverage is higher now than it was before the financial crisis, and 38% indicated they think it will be even higher a year from now.

While 28% of employers expect that, a year from now, they will put more emphasis on ensuring benefits provide a desired level of security for employees, the survey found much larger numbers of respondents expect to increase their focus on controlling and reducing benefit costs (53%) and managing the risk and volatility of those costs (49%).

The survey, based on responses from 118 mostly large employers in the United States and 459 employers globally, was conducted in early January.

The survey report is available here.

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Ascensus Names VP for Rocky Mountain Region

Ascensus has bolstered its sales force with an additional Regional Vice President, Josh Haynes, who will focus on the company’s "Rocky Mountain" territory.

Haynes is responsible for further developing Ascensus’ presence in Colorado, Arizona, Utah, New Mexico, and Wyoming. By providing technical plan design guidance and plan sponsor meeting support, Haynes will help financial advisers create and implement custom retirement plan solutions to meet their clients’ specific needs and objectives, , a press release said.

Haynes earned his Bachelor of Science from North Carolina State University.

Ascensus provides administration, recordkeeping, Employee Retirement Income Security Act (ERISA) consulting, compliance and sales support, trust and custody services, multilingual participant education programs, and training and documentation to more than 27,000 defined contribution retirement plans.

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