Not Ready for Retirement

NOT READY FOR RETIREMENT Key findings from Mercer's What's Working Survey Mercer's What's Working" survey asked nearly 7,000 employees in the US, UK and Canada to share their views on work, including their benefit programs. The findings: While retirement plans are highly valued, most employees in these countries are not satisfied with them and even fewer feel prepared for the financial demands of retirement. RETIREMENT RANKS HIGHLY Retirement plans rank among the most valued reward programs In all three countries. Priority rank (out of 13 reward programs) CANADA UK US Base pay Base pay Base pay Retirement savings Retirement savings or pension plan Type of work or pension plan Bonus or other 3 Type of work Type of work incentives Working for a Retirement savings | Low health or pension plan 4 respectable organization care costs Bonus or other Flexible work Bonus or other incentives schedule incentives SOURCE: Mercer's What's Working US Survey, 2011 SATISFACTION LOW AND VARIED Despite their importance, satisfaction with retirement plans is low across the US, UK and Canada and varies by plan type. Canada - Employees savings plan 30% Canada - Pension plan 34% US - Retirement savings/pension plan 45% UK - Retirement savings/pension plan US - 401(k) savings plan 49% 60% SOURCE: Mercer's What's Working US Survey, 2011 RETIREMENT READINESS IN DOUBT, ESPECIALLY AMONG WOMEN Fewer than half of US, UK and Canadian workers say they are doing enough personally to prepare financially for retirement, with women in the UK and US feeling much less confident about retirement than men. CANADA UK US MY COMPANY IS DOING ENOUGH TO HELP ME PREPARE I'M DOING ENOUGH TO PREPARE FOR RETIREMENT 32% 29% 38% 35% 43% 41% All 30% 29% 42% 37% 47% 44% Men 34% 29% 34% 33% 39% 38% Women SOURCE: Mercer's What's Working US Survey, 2011 YOUNGER WORKERS SHOW OPTIMISM In the US, younger workers have a more positive view of their retirement readiness compared to older workers. I'M DOING ENOUGH TO PREPARE MY COMPANY IS DOING ENOUGH FOR RETIREMENT TO HELP ME PREPARE 16-24 25-34 35-44 45-54 55-64 65+ 16-24 25-34 35-44 45-54 55-64 65+ (age) (age) SOURCE: Mercer's What's Working US Survey, 2011 %L8 %SE %47 %LS 41% %ɛ7 %88