Nineteen percent of workers in employer-sponsored defined benefit plans are “very confident” that they will receive income from their pension in retirement, down from 24% in 2008, according to a Mercer survey.
Thirty-five percent of respondents each said they are confident and somewhat confident, and 11% said they are not confident at all, according to a Mercer news release on the survey results.
Andrew Yerre, Mercer’s U.S. defined benefit business leader, said in an interview that he believes there is a fundamental misunderstanding among many employees about how pensions work.
“I think it has to do with, perhaps, the way it’s being communicated; (employees) don’t have a good understanding of the benefits,” Mr. Yerre said, noting that these statistics should be a “call to action” to employers to better educate workers.
Mr. Yerre said he believes some of the skepticism about pension security stems in part from publicity about pensions being frozen and the economic downturn.