Towers Watson survey re: retirement plan satisfaction

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GandK
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Towers Watson survey re: retirement plan satisfaction

Post by GandK »

http://www.towerswatson.com/en-US/Insig ... e-concerns

Lots of interesting numbers/charts, but the most intriguing numbers for me were about halfway down the page:
Overall, 62% of employees report being willing to give up some pay for a guaranteed retirement benefit, and more than half would sacrifice pay for a more generous benefit (Figures 8 and 9). This is consistent across both DB and DC plan participants of all ages, emphasizing that even younger employees are attuned to retirement planning — a trend that has taken off since we first asked these questions in 2009. Indeed, younger employees — regardless of plan type — are typically even more willing than older workers to trade off pay for more generous and certain retirement benefits (Figure 10).

Tyler9000
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Re: Towers Watson survey re: retirement plan satisfaction

Post by Tyler9000 »

I wonder how many people who say they would give up some pay for greater retirement benefits actually invest in their 401ks.

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jennypenny
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Re: Towers Watson survey re: retirement plan satisfaction

Post by jennypenny »

I wonder if people are willing to overpay for the guarantee, like when people pay a premium for an all-inclusive vacation that would cost less if they paid for everything a la carte. Maybe they're willing to give up pay so they don't have to think about it?

Another article discussing the survey ... http://blogs.marketwatch.com/encore/201 ... a-pension/

USAF Sgt
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Re: Towers Watson survey re: retirement plan satisfaction

Post by USAF Sgt »

I see a lot of false comfort from my colleagues in the military when it comes to their own retirement. Just about everyone wants to do their 20 and retire on a decent pension. Since that's the plan, in the meantime, they spend every penny they make. Nice houses, muscle cars, status symbol watches, etc. Many never learn the discipline and skill necessary to manage their own money (ironic in a profession that prides itself on discipline and skill.)

More often than most realize, they're out of the military before they get to 20 years. Failure to promote, causing trouble, injuries and illnesses, and all sorts of other things happen when you always thought getting to 20 was more about riding it out than anything else. Suddenly you're broke and unemployed, and often times have a skill that has no value in the civilian marketplace.

Chad
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Re: Towers Watson survey re: retirement plan satisfaction

Post by Chad »

Tyler9000 wrote:I wonder how many people who say they would give up some pay for greater retirement benefits actually invest in their 401ks.
I wonder that too. I would bet not.

Seneca
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Re: Towers Watson survey re: retirement plan satisfaction

Post by Seneca »

I don't think many people who pine for the days of corporate sponsored defined benefits have taken the time to look in to how they've worked out. The job hopping modern workforce makes this very complicated.

This is the union siren song though. A couple of years ago I saw a push for an IT union offering...health benefits and retirement no matter where you worked. I bet this connection is not far from the author...

Personally the risk of this single point of failure would be quite nerve wracking to me in retirement, so I think pensions suck anyway, but then again, I don't want to give up the freedom & dignity of taking care of myself just so I don't have to learn how to manage finances.

Chad
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Re: Towers Watson survey re: retirement plan satisfaction

Post by Chad »

I agree with most of that. I prefer having control over it.

jacob
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Re: Towers Watson survey re: retirement plan satisfaction

Post by jacob »

There's a general preference for having decisions taken out of your hands in return for some assurance. For example, just making corporate RE plans a matter of opt-out vs opt-in makes a lot of difference.

The way I see it, cynically, is that most people, really, never grow up to become adults. They remain parents or children (in the Eric Berne dynamics) following either a prescribed pattern and not making rational decisions on their own. These people---most people---are better managed and I mean "managed" in the indirect sense by changing their environment; by determining the choices they can make rather than deciding choices for them. The latter makes most people feel oppressed but they're oblivious to the former. Mostly.

Leave room for those who can to maneuver but guide everyone else into predictable patterns.

That's likely the way to run a society.

When did I ever become so cynical ... :-P

JamesR
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Re: Towers Watson survey re: retirement plan satisfaction

Post by JamesR »

Jacob,

I don't think you're being fair to kids like us. The real adults grow up to become children. While everyone else rushes in to act mature, play house, and get caught in all the standard traps. :P

jacob
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Re: Towers Watson survey re: retirement plan satisfaction

Post by jacob »

@JamesR - I was talking about this http://en.wikipedia.org/wiki/Transactional_analysis

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