High unemployment, meager raises and cuts to retirement benefits have made the majority of workers feel insecure about their financial future, according to a new survey by Towers Watson.
However, the economic recovery has made the highest percentage of people feel satisfied with their financial situation since 2009.
As CFO Journal reported Tuesday, more companies are shifting away from defined benefit pension plans because of increasing costs. Xerox Corp. and WellPoint Inc., for example, have closed and frozen their defined benefit plans and shifted workers to 401(k)s.
That trend is shifting investment decisions and responsibility to workers and is making them feel insecure about their financial futures. About 40% are thinking of working past retirement age to earn more money.
“These workers are likely to both cost more and be less productive than healthy, engaged workers,” said Shane Bartling, a senior retirement consultant at Towers Watson. “Extending the working career of this portion of the workforce does not make good business sense.”
Just 46% were satisfied with their financial situation last year, up from 41% in 2012 and 26% in 2009, according to the survey by the human resources consultancy firm of 5,070 U.S. workers at companies with 1,000 employees.
Source: The Wall Street Journal