Dealing with employee apathy

New technologies aren’t always the answer to pension involvement
By Girish Menezes and Shane Morgenstern
|Canadian HR Reporter|Last Updated: 02/12/2013

For many employers, defined contribution (DC) pension plans have become the primary source for retirement savings for employees. But many employees are uneasy about making the ongoing and complicated investment decisions necessary to build adequate retirement savings. As a result, they are under-planning, under-saving and under-prepared for retirement.

This often comes across as indifference or apathy. And it’s a problem facing employees around the world as employers shy away from defined benefit (DB) plans and place more responsibility on employees through DC plans.

But what looks like apathy is really a lack of personal confidence in the face of too many investment choices, according to focus groups conducted by Buck Consultants in the United Kingdom in 2009 with about 50 HR and pension professionals, consultants and academics.