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Tuesday, October 6, 2009

Poll Finds Strong DB Support

PLANSPONSOR.COM
September 1, 2009 (PLANSPONSOR.com) – Fifty-four percent of employees in a new Watson Wyatt survey say they are satisfied with their company’s retirement program.
A Watson Wyatt news release said the poll also found 61% of employees view their company's retirement program as the primary vehicle to save for retirement, and 29% indicated they would not save for retirement without it.
The survey found more employees with defined benefit (DB) plans (62%) are satisfied with their retirement program compared with those with only defined contribution (DC) plans (51%). Some 46% of employees said they would be willing to pay a higher amount out of their paycheck to ensure a guaranteed benefit in retirement….
More than half (52%) of workers covered by a DB plan said their company's retirement program is a key reason they continue to work for their employer compared to 33% of those with only a DC plan. Workers with a DB plan are also more likely to want to stay with their employer until retirement (67% versus 54% of those with only a DC plan).
Other preferences of DB plans over DC plans that workers cited include having benefits distributed as guaranteed monthly payments over retirement years (39%) and guaranteed payouts with no opportunity for higher returns, but also no chance of lower returns (25%. …
The Watson Wyatt survey was conducted in February 2009 and includes responses from more than 2,200 full-time workers.
More information is available at http://www.watsonwyatt.com/.
Fred Schneyer
editors@plansponsor.com