The retirement cost cuts came as employers shifted from defined benefit retirement plans to defined contribution plans such as 401(k)s.
“Beyond the overall increase, there has been a seismic shift that can be characterized as a tale of two benefit programs,” John Bremen, managing director of human capital and benefits for Willis Towers Watson, said in a statement. “Health care benefits are eating up a larger portion of dollars while the amount spent on retirement programs is on the decline. This reallocation has major implications for employers and employees alike.”
The survey also suggested that spending so much more on health care and so much less on retirement “might not align with employee preferences and needs,” the company said in a statement. Companies should consider whether to encourage employees to more widely use health savings accounts, and should consider “wiser spending on health care,” said Alexa Nerdrum, a senior retirement consultant for the firm.
The analysis was based on a database of retirement and health care programs for more than 500 large and medium-size U.S. employers.
Source: AARP Retirement
{$inline_image}
Employers Slash Retirement Benefits Spending
