WASHINGTON, Sept. 1 /PRNewswire-FirstCall/ -- Despite recent events in the economy, a majority of workers are satisfied with their current employer-sponsored retirement benefits. In particular, many place a high value on plans that offer security and flexibility, according to a survey by Watson Wyatt, a leading global consulting firm. The survey found that 54 percent of employees are satisfied with their company's retirement program. Findings also show that employees are using company programs as their primary source of retirement savings -- 61 percent of employees view their company's retirement program as the primary vehicle to save for retirement, and nearly one-third (29 percent) would not save for retirement without it. The Watson Wyatt survey was conducted in February 2009 and includes responses from more than 2,200 full-time workers. "The economic crisis has made it clear that retirement is something workers cannot take for granted," said Jamie Knopping, senior retirement consultant at Watson Wyatt. "And with employees' heightened attention to their future, employers have a golden opportunity to educate workers on the benefits of their retirement plans -- whether it is the value of a guaranteed flow of retirement income from a defined benefit pension plan or the responsibility of saving and choosing investments in a 401(k)." More employees with defined benefit (DB) plans (62 percent) are satisfied with their retirement program compared with those with only defined contribution (DC) plans (51 percent). This could be because many appreciate the security DB plans offer: Almost half (46 percent) of employees said they would be willing to pay a higher amount out of their paycheck to ensure a guaranteed benefit in retirement. Features generally associated with DC plans are attracting employees as well -- for instance, half (50 percent) prefer to have the freedom to make their own investment decisions and are willing to accept the associated investment risks for an opportunity to earn higher returns. Fifty-three percent also prefer a plan that participants can take with them when they change jobs. "In the current environment, employees are beginning to rethink the cost-benefit trade-off for retirement. And for many, that means a greater emphasis on financial security and flexibility than before," said David Speier, senior retirement consultant at Watson Wyatt. "But security and flexibility don't always go hand in hand. By crafting plans that balance the two, companies can offer valuable benefits employees are looking for, such as portability and some reflection of market conditions that will encourage the orderly transition of their workforces." Other findings include: -- Two in five workers surveyed said they would be willing to pay a higher amount out of their paycheck to ensure access to health care benefits if they retire before they are eligible for Medicare. -- Sixty-one percent of workers under age 40 are concerned about their future DB plan benefits being reduced, and 42 percent are concerned their future benefits will be eliminated as a result of the financial crisis. -- More than half (52 percent) of workers covered by a DB plan said their company's retirement program is a key reason they continue to work for their employer compared with one-third (33 percent) of those with only a DC plan. Workers with a DB plan are also more likely to want to stay with their employer until retirement (67 percent versus 54 percent of those with only a DC plan). -- Other preferences workers cited include having benefits distributed as guaranteed monthly payments over retirement years (39 percent) and guaranteed payouts with no opportunity for higher returns, but also no chance of lower returns (25 percent). For more information, please visit http://www.watsonwyatt.com/retirementplandesignpreferences About Watson Wyatt Watson Wyatt (NYSE:WWNASDAQ:WW) is the trusted business partner to the world's leading organizations on people and financial issues. The firm's global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 7,700 associates in 33 countries and is located on the Web at http://www.watsonwyatt.com/. DATASOURCE: Watson Wyatt CONTACT: Ed Emerman for Watson Wyatt, +1-609-275-5162, , or Steve Arnoff of Watson Wyatt, +1-703-258-7634, Web Site: http://www.watsonwyatt.com/

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