Now is the time to prepare for retirement

It is so easy to put off saving for retirement. It’s one of those things we all think we’ll get to tomorrow when there are so many urgent needs today. The problem is, tomorrow will be here before we know it.

If you’re an employer who sponsors a 401(k) or similar plan for your employees, it is more important than ever to encourage your workforce to take action now. According to a new study by Ameriprise Financial, preparation for retirement continues to lag, while there is a waning sense of urgency to prepare. If this lack of preparation continues, your employees and the rest of the nation will face the harsh realities of unfunded or underfunded retirement.

One of the most alarming results from the survey is that fewer people are taking the necessary steps to save for retirement than were doing so last year. While 72 percent said they’d done something to prepare for retirement, that number is smaller than in previous years, and only half said their retirement balances have recovered from the market downturn in 2008 and 2009.

The survey found one of the biggest challenges for individuals preparing for retirement is to determine how much they will actually need to save. Only one-fourth of those surveyed have done the math. Employees need new tools to help them not only project what they need, but also monitor and be held accountable to ensure they’re building the retirement nest egg they need.

Innovations are out in the marketplace that can help your employees understand and monitor their savings patterns, and whether those patters are actually meeting their retirement goals. Right now, while preparing for 2014, is a great time for employers to begin thinking about how their retirement benefits align to their attraction and retention strategies. Retirement planning is an urgent need, regardless of whether employees recognize it or not. If employers get ahead of this issue and provide real solutions, employees will appreciate it.

For the last several years, much attention has been put on health and wellness. Now it’s time to start paying more attention to financial wellness. With the economy still rocky and salary increases and bonuses not as rich as we’d all like to offer, demonstrating a sincere concern for your employees’ future financial security can build needed goodwill in your relationship with your workforce. Consider what you can do in 2014 to help employees plan ahead. It could yield greater engagement and loyalty in the years to come.

Michelle Hicks, a senior professional in human resources, is a director in the communication practice of Buck Consultants, a Xerox company.