Almost four in 10 employees of U.S. businesses would accept a smaller salary increase for a retirement benefit that doesn’t change with market performance, according to new research.
Towers Watson, New York, published this finding in a report based on the U.S. results of two global studies—one with human resources executives representing the employer point of view; the other with a random sample of employees—to determine the effectiveness of workplace practices. Towers Watson conducted the 17th edition of the “2012-2013 Global Talent Management and Reward Study” in partnership with World@Work. The U.S. results are based on responses from 278 organization and 3,600 employees.
The study discloses that 38 percent of employee respondents say they would accept a smaller salary increase for a retirement benefit that doesn’t change with market performance. Roughly half (49 percent) would also accept a smaller bonus opportunity for such a retirement benefit. And 45 percent of those polled would trade some of their paid time off for a guaranteed benefit.
In addition, two-thirds of the respondents agree that retirement security has become more important during the last three years. And just over 4 in 10 (42 percent) plan to delay their retirement, presumably in at least some cases, for financial reasons.
The survey additionally notes that just 45 percent of employees are confident they have enough money to live comfortably 15 years into retirement. Less than one-third (29 percent) agree that’s true for years into retirement.