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©SHRM 2009 SHRM Poll July 6, 2009 2
Other
Suspend investments in mutual funds that are determined to be particularly risky
Offer additional investment options for employees (i.e., other than 401(k), pension plan, etc.)
Change investment management companies (e.g., for organization's 401(k), pension plan, etc.)
Implement/revise investment policies for company 401(k), pension assets, etc.
Offer educational literature, presentations, etc. for employees specific to investing/retirement planning in the climate of current financial challenges
0% 20% 40% 60% 80% 100%
6%
6%
7%
11%
21%
83%
9%
8%
10%
13%
20%
72%
2009 (n = 495) 2008 (n = 205)
What, if any, action related to employee investments/retirement planning is your organization MOST LIKELY to take in the coming months in light of the current financial challenges to the U.S. economy?
Note: Respondents who answered “Not applicable” were excluded from this analysis. Percentage s do not total 100% as multiple response options were allowed.
©SHRM 2009 SHRM Poll July 6, 2009 3
In the past 12 months, has there been an increase, a decrease or no change in the number of employees…
Increase Decrease No change 2008 2009 2008 2009 2008 2009
Planning to extend their retirement date due to the recession? — 68% — 0% — 32%
Reducing their 401(k) contribution? — 67% — 2% — 31%
Suspending contribution to their 401(k)?
— 62% — 2% — 36%
Asking for advances on their 401 (k) savings? 39% 49% 3% 1% 59% 50%
Requesting for more guidance and information specific to investing/retirement planning? — 47% — 1% — 52%
Reporting losing their homes (due to foreclosure/inability to pay rent, other reasons)? 14% 30% 0% 0% 86% 70%
Having their wages garnished by collection agencies? 26% 26% 6% 1% 68% 73%
Not rolling over their 401(k) savings after employment termination? — 21% — 3% — 76%Cashing out (i.e., prematurely before reaching retirement age) their 401(k) savings completely? — 18% — 0% — 81%
Asking for advances on their wages? 20% 16% 2% 1% 77% 83%
Increasing their 401(k) contribution? — 10% — 35% — 55%
n = 328-469
Note: Respondents who answered “Don't know” were excluded from this analysis. A dash (—) indicates that this particular option was not available in 2008
The respondents who indicated increases in the number of employees planning to 1) extend their retirement date; 2) reduce their 401 (k) contribution; 3) suspend contribution to their 401 (k) attributed the increase to:
• Fears about decline in financial security (e.g., dissatisfaction with 401(k) performance, diverting 401(k) funds/other funds to personal savings account).
• Decreases in household income.
©SHRM 2009 SHRM Poll July 6, 2009 4
Yes, employees are automatically enrolled into our organization’s defined contribution retirement sav-
ings plan
20% 30% 40%
30%
30%
32%
32%
35%
2009 2008 2007 2006 2005
Does your organization automatically enroll its employees into your organization’s defined contribution retirement savings plan (i.e., 401(k)), meaning that employees are placed into the plan unless they opt out?
Source: 2009 Employee Benefits: A Survey Report by SHRM
©SHRM 2009 SHRM Poll July 6, 2009 5
In your automatic enrollment plan, what is the default percentage of salary that is deferred?
2006 (n = 65) 2009 (n = 189)
Less than 2% 21% 21%
2 to 4% 54% 68%
5 to 7% 10% 9%
8% or more 8% 2%
Other 7% 0%
NOTE: Percentage does not total 100% due to rounding. Only respondents whose organization automatically enrolled employees in defined contribution savings plan where included.
©SHRM 2009 SHRM Poll July 6, 2009 6
Of the employees automatically enrolled in your defined contribution retirement savings plan, approximately what percentage have opted out or chosen not to participate?
2006 (n = 65) 2009 (n = 189)Less than 1% 60% 51%
1 to 2% 22% 26%
3 to 4% 8% 13%
5% or more 10% 10%
NOTE: Percentage does not total 100% due to rounding. Only respondents whose organization automatically enrolled employees in defined contribution savings plan where included.
©SHRM 2009 SHRM Poll July 6, 2009 7
Other
No, but we are considering implementing this option
No, and we have no plans to do so
Yes
0% 10% 20% 30% 40% 50% 60% 70% 80%
2%
13%
77%
8%
4%
4%
75%
17%
2009 (n = 499) 2006 (n = 273)
Does your organization’s defined contribution retirement savings plan include a feature that automatically increases employees’ deferral rates (i.e., participant contribution rates are automatically increased each year)?
©SHRM 2009 SHRM Poll July 6, 2009 8
Have you seen an increase in the number of employees opting out of your organization’s automatic employee deferral rate?
Yes; 21%
No; 79%
Differences by Organization Staff Size
Small Medium Large
Yes 23% 19% 26%
No 77% 81% 74%
n = 307
Note: Excludes respondents who answered “don’t know”..Organization staff size: small = 1-99 employees, medium = 100-499 employees, large = 500 or more employees
©SHRM 2009 SHRM Poll July 6, 2009 9
Are employees at your organization more or less confident about the adequacy of their retirement savings now compared with six months ago?
More confident2% About the
same31%
Less con-fident67%
n = 518
Note: Excludes respondents who answered “Not sure.”
©SHRM 2009 SHRM Poll July 6, 2009 10
In the past 12 months, has there been an increase, a decrease or no change in the number of employees at your organization getting more involved in the management of their retirement plan?
Increase53%
No change
44%
Decrease4%
n = 518
Note: Excludes respondents who answered “Not sure.”
©SHRM 2009 SHRM Poll July 6, 2009 11
What do you see as the biggest threat to the retirement savings of employees at your organization?
Other
The current and future financial instability of my organization
The inadequacy of government retirement programs (i.e., Social Security)
Employer-based retirement offerings alone are not enough to provide solid retirement savings
Employees do not understand their retirement options (financial literacy)
The instability of the financial markets
Employees are not saving enough for retirement
0% 10% 20% 30% 40%
2%
3%
7%
10%
14%
32%
32%
n = 521
©SHRM 2009 SHRM Poll July 6, 2009 12
How confident are you that your organization’s retirement savings option is meeting your employees’ retirement needs?
Very con-
fident23%
Somewhat confident59%
Not at all confi-dent18%
Differences by Organization Staff Size
Small Medium Large
Very confident 20% 26% 24%
Somewhat confident
58% 59% 59%
Not at all confident
22% 16% 18%
n = 514
Note: Organization staff size: small = 1-99 employees, medium = 100-499 employees, large = 500 or more employees
©SHRM 2009 SHRM Poll July 6, 2009 13
What percentage of the employees at your current location are in each generation?
Nexters (aka Millenials, Generation Y) - born 1981 and later (ages 28 and younger)
Generation X - born 1965-1980 (ages 29-44)
Baby Boomers - born 1945-1964 (ages 45-64)
Veterans (aka Traditionalists, WWII Generation) - born 1944 and earlier (ages 65 and older)
0% 10% 20% 30% 40% 50%
12%
34%
44%
10%
17%
36%
41%
6%
2009 (n = 440) 2004 (n = 249)
n = 440
©SHRM 2009 SHRM Poll July 6, 2009 14
Small (1 to 99 employees) Medium (100 to 499 employees) Large (500 or more employees)0%
10%
20%
30%
40%
32%
38%
30%
n = 502
Organization Staff Size
©SHRM 2009 SHRM Poll July 6, 2009 15
Organization Sector
Government sector
Nonprofit organization
Publicly owned for profit
Privately owned for profit
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
9%
17%
20%
54%
n = 507