Despite their own best efforts, benefits managers said their employees are still inadequately planning for retirement. Less than one in five benefits managers said their employees were well-prepared for retirement, according to the 1996 Merrill Lynch Retirement and Financial Planning Survey. Only 68% of the 400 sponsors interviewed for the survey said they thought their employees had a good or excellent understanding of the company's defined contribution plan. (By contrast, 80% thought their employees had a strong understanding of their health-care plans.)
Despite the perception of a gap in employee understanding, only 40% of respondents said their companies provide employees with financial planning. Yet 60% of employers and 67% of employees surveyed said they thought financial planning would be beneficial.