A retirement savings plan is valued by many employees -use it to hone your talent strategy

According to Fidelity’s research, retirement savings plans are one of the most valued parts of an employee benefits package, with 22% of workers across the world reporting they are a key reason to stay in their jobs.1

That’s why global companies should have a good understanding of how workers think about and prepare for retirement, which may provide a competitive advantage in managing the talent pipeline, supporting workplace productivity, and retaining employees.

While workers like retirement plans, they say that saving enough for retirement causes them stress - think about how a strong retirement program can support them

In our 2023 Fidelity Global Sentiment Survey, 54% of workers around the world said saving enough for retirement causes them stress. Of those individuals, 59% also said it is affecting their ability to concentrate at work.1

If your organisation offers a strong and competitive retirement plan, we encourage you to offer a highly visible, targeted communication strategy to let prospective and current employees know about it. Emphasise the tools, support and continuing education your organisation provides to help your employees learn more about how to build an effective retirement strategy that may provide a sustainable income.

Embrace age diversity with a maturing workforce

With an increasing number of mature workers expected to stay in the workforce, think about this segment as a source of talent for your organisation. By 2028, over one-quarter of the U.S. workforce will be age 55 or older. 2And one in four workers around the world are planning to retire later than they originally expected. 1Older workers frequently offer a strong work ethic, excellent problem-solving skills and a deep understanding of customer needs, among other attributes.

While their reasons for continuing to work will vary, 28% report that “I enjoy working so I want to work longer.” Others (39%) report that “My retirement savings are not as much as I expected” or “My financial circumstances have changed”, among other reasons. Whatever their motivation, this phenomenon can have a positive effect on your talent management efforts and is prompting savvy employers to consider a phased retirement program approach.

Key takeaway

Understanding how workers think about and plan for retirement may be a key element to an effective workplace talent strategy for attracting and keeping top talent. Offering a strong retirement program with supportive tools and education may go a long way in helping your organisation stay ahead of talent challenges.
 

1The Fidelity Global Sentiment Survey, 2023
2Lobell, Kylie Ora, “Why Companies Should Hire Older Workers,” SHRM, October 26, 2023

 

This information is designed for scheme sponsors, trustees, their advisers and consultants use only and should not be relied upon by individual investors.

Fidelity refers to one or both of Fidelity International and Fidelity Investments. Fidelity International and Fidelity Investments are separate companies that operate in different jurisdictions through their subsidiaries and affiliates. All trademarks are the property of their respective owners. 

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