The power of workplace retirement programs

Mercer analysis reveals how organizations can deliver stronger retirement outcomes

Advantages of workplace plans for your employees:

Employer contributions

Incentivize employees to save and to help amplify their saving power.
Plan oversight

Offers employees assurance that they can access reputable investment funds to suit their needs.
Group pooling

Provides the greatest advantage. Accessing lower investment management fees may seem like a small advantage. But the gains add up to real benefits over time.

Retirement ready at age 66 or

67%

probability of not running out of money if retiring at age 65

Retirement ready at age 70 or

35%

probability of not running out of money if retiring at age 65

Delay retirement readiness

Retirees have to work 4 extra years.
Impact post-retirement income

Retirees can run out of money 12 years earlier if retired at age 65.

Fees tend to be higher at that point, which can impact how long the savings will last.

If an employee retires at age 65, they are expected to run out of money 5 years earlier.

To improve employee retirement readiness:

Sharpen your investment strategy
- Conduct due diligence on your target date funds in an inflationary environment.
- Ensure the funds available to your employees are structured to meet their needs.
Support employee financial wellness
- Invest in education to boost plan member confidence.
- Design your plan with flexibility to meet all employee life needs.
Smooth the transition to retirement
- Conduct a retirement readiness analysis of your workforce.
- Carry out a diagnostic of your existing plan to ensure your members are empowered in retirement.