WTW Survey Reveals Retirement Readiness Gap Among U.S. Employees
A recent survey by WTW (NASDAQ: WTW) highlights a growing concern among U.S. employers regarding the effectiveness of defined contribution retirement plans in helping employees retire on time and with confidence. The study, based on responses from 547 plan sponsors, shows that while most employers prioritize retirement savings as part of total rewards, many lack clear metrics to assess whether their current programs are achieving desired outcomes. Employers increasingly recognize the need for advanced analytics and AI tools—80% are open to using them—to better monitor and improve retirement readiness. However, plan design and governance remain outdated in some cases, with only half of sponsors identifying necessary updates. Additionally, support often wanes during critical transition periods into retirement. The survey also reveals a disconnect between aggregate metrics used by employers and the actual needs of individual employees. As a result, many companies are rethinking how they allocate resources to focus more on improving participant outcomes rather than just managing administrative tasks.
Topics: AI_in_finance defined_contribution employee_benefits