Keep Working For Your Retirement Plan

Retirement plan benefits are one of the reasons why some employees keep working with their current employers or move to a different company

. A Towers-Watson survey with more than 3,000 participants from the private sector says that more than 40% of all workers stay with their employers, while about 25% chose their current employer because of the retirement benefits offered.

If an employee leaves his or her current workplace prior to getting enrolled in the workplace retirement plan, he or she may only receive partial benefits (if at all) compared to working at that company for a much longer duration. It is usual for pension plans to be designed to reward workers who have stayed at the job longest, and those who stay for a comparatively short period before getting fully involved in the company 401K may only get a part of employer contributions, or nothing at all.

Old-school or conventional pensions are the ones that are most likely to entice potential hires to join a company and retain workers compared to 401Ks. About 33% of employees who are enrolled in traditional pension plans report that the retirement plan attracted them to their current jobs, while a little more than 20% of all respondents say that the company 401K caused them to sign up and come on-board. In addition, less than a third of all workers say that they remain with their current employers because of the matching 401K contributions. As for the comparison between traditional pensions and 401Ks, about 80% of workers who have conventional pensions are likely to remain with their employers until retirement, while only 62% of those with 401Ks plan to stay where they are until they choose to retire.

Senior workers are not the only ones who decide on staying at work or choosing certain jobs because of plan benefits. Many of the younger workers today are already starting to establish their retirement plans and choose jobs based on the potential for retirement security. More than 42% of all participants that are under 40 years of age say that the pension plan of an employer was a significant reason that pushed them to accept their current jobs which got a percentage increase of about 15% from last year. As for 401Ks, only 17% of those under 40 chose their jobs because of that particular retirement plan. 70% of all younger employees with pensions are choosing to keep working with their current employers for the pension payouts, while less than 40% of these workers plan to stay because of the retirement plan benefits from their 401Ks.

by: Katherine Smith

POST COMMENT

Advice to Get Your Next Job at Costco Job Search In Poland Why Changing Jobs May Cause Retirement Downsizing 401k Problems For Workers Changing Jobs Top Jobs For Felons - 5 Tips For Finding Employment For Felons Offshore Jobs In The Oil And Gas Industry Search Options On The LG Optimus One Research Essay Advice About Getting a Job at Costco Nature and Layout of Vocation of a Dental Assistant What Are The Top 10 Recession Proof Jobs Tips For Finding Jobs In Malta Useful tips for professional photography