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Emerging Retirement Model Study: A Survey of Plan Sponsors

Emerging Retirement Model Study: A Survey of Plan Sponsors. January 12, 2010 Cynthia Mallett, Vice President, Product & Market Strategies, Corporate Benefit Funding. L1110142893[exp1111][All States][DC]. Overview. Background Current economic forces are driving opposing trends

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Emerging Retirement Model Study: A Survey of Plan Sponsors

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  1. Emerging Retirement Model Study:A Survey of Plan Sponsors January 12, 2010 Cynthia Mallett, Vice President, Product & Market Strategies, Corporate Benefit Funding L1110142893[exp1111][All States][DC]

  2. Overview • Background • Current economic forces are driving opposing trends • Workforce reductions colliding with workers seeking to delay retirement • Employers, as well as Congressional leaders, are grappling with the notion of what “retirement” really means • Implications for future benefit design and longer term workforce management • Research objectives • Explore whether and to what extent plan sponsors are recalibrating issues surrounding the aging workforce • Identify emerging benefits and workplace practices that may be used to manage very experienced workers going forward

  3. Methodology • Commissioned Asset International to conduct online survey of plan sponsors • with 1,000+ employees • offered DB and/or DC plan, and as well as at least two employee welfare benefits • Targeted senior compensation & employee benefits executives with a strategic view of their company’s direction • Fielded August – September 2009 • 240 survey respondents

  4. Knowledge Drain Concerns Trump Delayed Retirement • Knowledge drain is both a “today” and “tomorrow” issue for most employers Concerns relating to employee retirement, today and in 3-5 years

  5. Productivity and culture are casualties of retirement • But many believe the bottom line will benefit Impact of Retirement of Older Employees

  6. Disconnect Between Worry and Action • Few employers have taken steps to curtail or assess impact • But time may be on their side Current and Expected Retirement Ages +3.0 Years +3.3 Years

  7. Benefits Not Viewed as a Strategic Lever • Retiree benefits incidence increases with firm size • Few acknowledge link between post-retirement benefits and retirement decision • Missed opportunity to use benefits as a strategic tool? Do You Offer Post-Retirement Benefits?

  8. Phased Retirement Programs Key to Recalibrated Retirement • More legislation and regulatory guidance welcome Potential Obstacles to Offering a Phased Retirement Program

  9. New Retirement Model Emerging? • A more gradual transition of older workers from full-time work to retirement. • The burden of retirement security has, by large, shifted to the individual. • Older workers, once retired, may move back into and out of the workforce either for the social engagement and/or out of financial necessity. • A fluid and flexible continuum of company-specific needs and solutions. • A continuum that may change in response to market conditions, employees / retiree needs and company objectives.

  10. MetLife Insurance Company 200 Park Avenue, New York, NY 10166 www.metlife.com

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