Building a Better Plan for Employees Nearing Retirement

Adding a specialized plan tier can help support the unique needs of older workers

As employees age, their financial needs and concerns shift significantly away from those of their younger colleagues. For example, where younger employees are much more concerned about running out of money in retirement, older employees are much more concerned about healthcare. Older workers are also more financially complicated than their younger counterparts, as they have had more time to amass additional accounts.

Nevertheless, retirement plans often treat the two groups as if they’re exactly the same. Older workers’ combination of shifting priorities, complex financial pictures and diverse income situations means that employers and advisors must look beyond one-size-fits-all retirement solutions. Instead, older employees may benefit from solutions that are customized to their unique needs.


Key findings

  • Employers and advisors may want to consider a retirement tier as part of their offering to employees in the workplace retirement plan.
  • Tailored communications can greatly benefit older workers.
  • Personalized solutions can make more sense for older workers than target date funds.

Download the white paper

Read More Empower Institute Articles