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Persuading employees to participate in company retirement plans isn't getting any easier.
Alix Stuart, CFO Magazine
October 1, 2008
Most CFOs think that offering employees a 401(k) plan is not only a necessary part of doing business but "the right thing to do," according to a recent survey of more than 200 finance executives by CFO Research Services (in collaboration with Charles Schwab Co.). Getting employees to participate, though, remains challenging. "Younger, hourly workers are living hand-to-mouth, and no level of education appears to convince them to save for a distant retirement date," said a CFO in the consumer-goods industry. Still, companies persist. More than half (55 percent) of respondents say they expect their company to increase the amount of time and money it commits to employees' retirement readiness over the next five years; only 6 percent plan to reduce resources. (For a related story on benefits, see "Adult Education.")