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As just about everyone in today’s workforce knows, pension plans are going the way of the dinosaur, being replaced by employee contribution plans such as 401(k)s and Individual Retirement Accounts. But with the recent severe downturn in the economy, it has become evident that these retirement accounts leave a lot to be desired. Moreover, an additional problem is that many employees are not putting enough money into the plans.

Because of these problems, many human resource departments are attempting to help employees through the maze of retirement options to help ensure that they have resources after retiring, according to Rita Pyrillis of Workforce Management.

Employers and workers today are taking an intense look into retirement plans and what types work the best. With the recession, the amount of money in employee retirement plans took a big hit, in turn prompting them to delay retirement – which also affects their employers.

Companies are looking at combination plans, for example, that bring together a 401(k) component with some type of guaranteed benefit, such as a cash-balance plan, Pyrillis says. These kinds of plans are among the fastest growing, jumping about 20 percent since 2001.

Because many workers have not even been enrolling in the plans, employers are now taking action to do it automatically. Companies also are offering employees time with financial advisors, according to Pyrillis. Part of the reason for this is that when employees cannot retire, there is less opportunity for growth and advancement for younger workers, which in turn affects employee morale. If the regular cycle of employees retiring and new ones coming on board is disrupted, the company is faced with an aging group of increasingly disengaged workers simply hanging onto their jobs because they cannot afford to do otherwise.

Some business analysts say that the shift in responsibility for retirement from the employer to the employee has led to a big erosion of trust between workers and employers. As a result, in order to attract and retain good workers, employers are increasingly feeling pressure to take a more active role in retirement plans.

Two of the most prevalent trends right now, according to experts, are measures employers are taking to automatically enroll employees in retirement programs, and the increased use of target-date funds, which rebalance an investment portfolio toward less risky assets as a person’s retirement date approaches.

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