A new report from the Transamerica Center for Retirement Studies looks at how employer and worker disconnects are threatening retirement benefits and savings.
While 78% of companies in the “Employers, Workers, and the New World of Work” study are optimistic about their business’s future, 49% of workers report feeling exhausted and burnt out, likely due to the emergence of artificial intelligence (AI) technology in the workforce. Thirty-six percent of employers report using AI or are planning to use the technology for job elimination, which 50% hope the tool will help them add new jobs.
“As AI promises to revolutionize business models, employers are upbeat about the future, but they may be overlooking their most valuable asset – their employees,” said Catherine Collinson, CEO and president of Transamerica Institute and TCRS. “It takes people to implement and operationalize new technologies and, right now, workers are stressed and strained in today’s economy.”
The disconnect among employers and workers extends to retirement planning benefits, Transamerica reports. According to the research, 91% of workers consider a 401(k) or similar plan as important to their wealth and health, while only 61% of employers offer a workplace retirement plan.
Others feel unsupported in working past retirement age. While studies show that most workers end up retiring early due to medical and aging reasons, 44% of workers in Transamerica’s study expect to retire after age 65 or do not plan to retire. Another 51% plan to continue working in retirement.
Most employers (83%) in Transamerica’s research say they’re supportive of employees working past age 65, but not all are accommodating with benefits. Only 68% offer one or more flexible transition options, and just 39% offer a formal phased retirement program.
Further, while 89% of employers describe their companies as “age friendly,” in which they offer opportunities, work arrangements, and training and tools needed for employees to be successful, only 72% would consider their employers as such.
“Our research findings illustrate opportunities for employers to reevaluate their workforce management priorities, including training and development, mental health resources, flexible work arrangements, caregiving support, phased retirement options, and benefit offerings. By doing so, they can create win-win solutions for themselves and their employees,” said Collinson.
Transamerica’s report is based on two separate surveys: one of 1,900 for-profit U.S. employers and the other including over 6,100 workers of for-profit companies.