Many workers are more concerned with retirement security than their current wages, as the workforce ages and financial pressures are encouraging employers to cut back on retirement benefits.
About 44 percent of employees in the nation fear their retirement benefits will be reduced in the next two years, according to a survey by Towers Watson. Of respondents, 53 percent said they would trade some of their pay for stronger benefits.
The number willing to pay a higher amount from each paycheck to ensure a guaranteed retirement rose 9 percentage points compared to two years ago, reaching 55 percent. Similarly, half said they would accept lower pay in exchange for access to health insurance benefits if they retire before becoming eligible for Medicare.
Worker concerns are focusing more on employee benefits rather than wages, despite the fact that income growth has been slow in recent years. This trend holds true even among younger workers and those with defined benefit retirement plans, according to the report.
Most attributed their concerns to rising healthcare costs, with many also citing worries about Social Security, Medicare benefits or the cost of necessities. Towers Watson reports that older workers, lower-income workers and female employees were more willing to release investment control in exchange for guaranteed returns.
