More employers rethink retirement plans

Fifty-nine per cent of employers are likely to reassess their retirement and pension programs by the end of this year as the onus for retirement savings shifts away from companies and onto the shoulders of workers, say experts.

Post-retirement health-care benefits are also disappearing, with one third of employers saying they expect to reduce coverage for future retirees and 43% reporting they may look to retirees to share more of the cost of these benefits, according to a survey of retirement trends by Hewitt Associates.

“We see a real trend away from retiree health-care benefits,” says Rob Vandersanden, a principal with Hewitt’s Calgary office. “People just won’t have that safety net of the additional health-care benefit after retirement and that means they’re going to have to save even more for retirement.”

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Keywords: retirement