Powerful financial and demographic forces, combined with the realities of human behavior, are leading to a retirement crisis in the United States that could have negative consequences for many—including taxpayers, retirees and employers. While some of the causes of the crisis are out of anyone’s control, others can be addressed to alleviate some of the impact. Employers and plan sponsors will have to take a role in promoting the retirement security of workers. The International Foundation has produced a report that examines the factors contributing to the crisis, the implications and how employers and plan sponsors can help workers achieve a secure retirement.
2014 Retirement Readiness Ratings by Preretirement Wage Quartile
Source: Jack VanDerhei. “What Causes EBRI Retirement Readiness Ratings™ to Vary:
Results From the 2014 Retirement Security Projection Model®,”
Issue Brief (EBRI, 2014), p. 7.
Plan Sponsor Confidence Regarding
Average Worker Preparation for
Retirement at Normal Retirement Age
Source: Financial Education for Today’s Workforce: 2014 Survey Results (International Foundation of Employee Benefit Plans, 2014).
Worker Confidence Regarding
Source: The Changing Face of Retirement—
AEGON Retirement Readiness Survey, 2014, p. 38.
Reasons for the Retirement Crisis