Employers are increasingly expanding the options available to help employees save for retirement. But what are they doing to help employees spend those funds responsibly once they leave the workplace?
In 2023, just 19% of employees participated in a pension plan, according to data from the Bureau of Labor Statistics. Pensions, also known as defined benefit plans, provide a set monthly payment for life, an increasingly appealing benefit as employees approach retirement with a lack of education around how to spend down their savings.
“Over the last 20 years, if not more, we’ve been getting people to save and invest, with mixed results,” says Mindy Zatto, founding principal at Strategic Benefits Advisors. “Now that we have all these people retiring, the question now is, how are they going to figure out how to spend it? And we’ve essentially given all of that responsibility to individuals.”
This is an excerpt. Read the full article in Employee Benefit News.