LOS ANGELES, Oct. 19, 2011 /PRNewswire/ -- The Los Angeles office of Lockton Retirement Services today announced the launch of its new Retirement Readiness Practice and proprietary suite of consulting services to help employers mitigate increased costs associated with an aging employee population who are deferring their retirement beyond 65 years of age. Employers will bear the burden of several layers of increased costs when employees have no financial choice but to continue working beyond a normal retirement age.
"Dealing with an aging, financially unprepared workforce is a reality that should concern employers," explains Rick Unser, vice president of Lockton Retirement Services. "Employers face serious financial implications if they do not take steps now to help their older employees leave the workforce and successfully transition to retirement."
Unser cites a 2011 EBRI Retirement Confidence Survey where 41 percent of workers 55 and older expect to retire beyond age 65, more than double from 2001. An aging employee population which must remain in the active workforce results in higher employer expenditures for health benefits, work related accidents with more severe outcomes, and productivity losses, according to Unser.
Lockton's client experience has shown that healthcare costs for employees over the age of 65 are more than double that of employees aged 45-55. In addition, workers' compensation data has shown that while the statistical rate of work-related accidents does not increase dramatically for employees over age 65, when incidents do occur they are more severe and involve more paid time away from work. A NCCI study(1) shows the average costs per claim for older workers were more than twice as high on lost-time claims (more than $27,000 vs. slightly more than $12,000 for younger workers).
"It is in the best interests of employers to improve the retirement outcomes for their employees," adds Unser. "Lockton has dedicated the intellectual capital and resources for employers to develop a culture of retirement readiness, which will help employees enjoy a comfortable retirement while generate short and long term cost savings for their companies."
Lockton employs a strategic, multidisciplinary approach to address the complete needs of aging employees where retirement readiness is only one successful byproduct of a comprehensive program. The broad set of workforce interventions and risk management strategies include:
- Assessment of current income replacement ratios of employees with Lockton's interactive proprietary "Retirement Readiness Dashboard"
- Optimal plan design to encourage employee retirement readiness and maximize the impact and effectiveness of employer fixed or discretionary contributions
- Investment consulting services to secure cost efficient and appropriate investment choices based on the needs of employee demographics
- Customized targeted education campaigns to modify employee savings behavior
- Evaluation and engagement of independent service providers to deliver the desired level of investment advice and one-on-one support
Unser outlines six steps to take in 2012 to start getting a workforce "retirement ready." To obtain your copy of the article, visit www.erisariskmanagement.com/readiness. For more information, contact Rick Unser at 213-689-2392.
(1) Age as a Driver of Frequency and Severity, NCCI, December 2006
About Lockton Insurance Brokers, LLC
Investment advisory services offered through Lockton Investment Advisors, LLC, a SEC registered investment advisor.
Lockton Insurance Brokers, LLC is the Southern California subsidiary of Lockton Companies, the largest independent, privately owned, global insurance broker that employs more than 3,800 people.Lockton provides more than 15,000 clients around the world with retirement programs, insurance, benefits, and risk management consulting, offering an uncommon level of client service. From its founding in 1966 in Kansas City, Missouri, USA, Lockton has grown to become the largest privately held insurance broker in the world and 9th largest overall. Business Insurance recognized Lockton as a "Best Place to Work in Insurance." You can learn more at www.lockton.com.
Securities offered through Lockton Financial Advisors, LLC a registered broker-dealer and member FINRA, SIPC. Investment advisory services offered through Lockton Investment Advisors, LLC, a SEC registered investment advisor. For California, Lockton Financial Advisors, LLC, d.b.a. Lockton Insurance Services, LLC, license number 0G13569.
Contact: | Linda O'Hanlon | +1 818 386 1916 | |
+1 818 472 6028 (mobile) | |||
ohanlon@straightlinecomm.com | |||
SOURCE Lockton Retirement Readiness Practice
