A B Itr s t oa ishe 1. of dly C g , OVI rI In M tow ndust he a fla c D ing p r ti sy o im rec o y im cp n holog seg a o p h c n or tit o m tw s m a ie e a nc v nt s ic ne a e b s f rs, , e io t a o hin lik c how u to look a es d r r c e t so he a t a r a h e til a se r o e b w r ot ts nd b li oe h side r k di k ha ely se er ff v rs ior v to eren re ic s of s e - swa s se e ant r tl te he y e cm r y . t ing or w Th a th ny or s e ,e t k he a im — ti ls for m p o w fe a cor eli fa a e ctr k c a n of e of c for e a tg iv inf rrc unn it e n ela y a? d t te e ov ing W ion o q r ua ha dera out iff ttn ion ic c ll ha p ult of op a impact lle yn m ula d in nge one a thir ion ls s w y o ing ., st T c la ill ohor he udy ind c for t khe r e of a t y s w k v fa a v now a iv a s g c rridua ie e ie e tle in r s y n . d e ls o For g re f a e re g rl e a -a ini sons ng a , je rob e nt g e aar rting d a ing si a a e the nd g xa m ho rila e m w w t ehus p rm or tle le o ek , v nt d a indiv e fo rff l to a tror ha w ce d idua t d w in orde g inf o ha r w e la ls n ta , tt ton ion p he e arrnd y le a t o ha v fix ut ov ha ed r s e e a v d r us b g e a e e b ll unc a for udg in a fo ful r e e w l p e thold the ro tic a ray k rtinl e ing ur ele rm y s e ft . a r p t e o tI ta he e tsu t d rtcie e lt a a la rm ing lly n a n to b ba or nd m ls fr o or for om h e b e ighe tc e t im e e m m ? ra p ror A unde c aw nd rc e oe ta e m g how c d re onomi e st s, g (aa i.e nin nd w ., re ill gc how inf a ful ttfa he e la rc t to ty b w ion r or ot look a a or s p h e k p — e /l rd oa ife m a uc tnd p cw flexib e loy h r or s t the e e khe te ir for y ili s a e ir ta m y c a ll nd , e e br a nt ili e e nd ev xit t m y e p a la b p ta l a o e loy nni ntd tn e e ng rrre s - 3 op e — nt p b ror y y tov w uni or e b w spe rt k e ill y ing tne im nd tb o fit e e long p ha on str.o ov v b e a eide a r va , si oid nd sa csolu e v a rss ing e b spond te iions a a nt m s fr ia or ls om . end )Unt , c or o a em il w d rsi e uc p ngle d a e a uc r te unde ion ing d p w oint . it tMost rhe st h a tt ir im hose nd lif im ee w . p st Thi he or indiv yle t ts a a he nt eidua r xpe ply p inf , roa ls c e la tm a tw cion w tp h w ions ho loyill a e ?ill r r e he s bnot oft lp e d e e e n on m eha p pa lly oy vfix e e e nt e t rhe s ha d r eb nc tud rvus h eg e ta e d of t, m (how i.e t or he e ., ir c e t om he ff em ey c p p ta rloy iv e re e he e a a e ns nd b s liv e e a pnd ictur ar ee of w to reis t sponsiv he a eb tsor to ale ide bnt e tnt he tp he ify ool im Fe w p a a d a nd y e cs t tr a ror o e l Re t he ir m ese od lp mre iv rfy nt e e t b ir w p e ea ill ha et s tb e ve a rior ns , chie a).nd . v Thi ew a s is he st t he eaals d ro y som tst rue re e a of of m low tof her ee tr rlia - aw ns balit e gor einc w y om o fa rk ce t eor .r s. s w The ill fa ke ll a y tw aa ke y, aw em ay p loy is te he rs A View From EBRI’s Retirement im and por em tap nc loy e e of es w being ill ba et tin a ent iv be it tof o tahe w a ov ite -a ra nd ll infl -see a tm iona ode ry t o imdpeatc etr m and inet he the w ba ey st it c c our uts a se.c ross various population These arNo e som t all e B of atby he B que oost m ions ers a tarce k th lede s by aEm BRI e. ’s A not Rethe irerm im ent por Se tacnt ur it ey xa Re mp sea le rrc eh C latees t nto ert he (RSRC larg)e P B aa rtbne y B rs oome as the r c yohor t, Security Research Center: Real c ohorts disproportionately. T sought These hem e # a tro w e s 3 hic by :ut nt h Ass he aoft fe si et bal eze w n of is E Bg t a RI he rn oup c ala es ne b d m d or ot int a for he y o driv rc a e r e si tsea rngle e e beh nds rc h in atm o av or d or io a pt d hous r ee ., r bto ut p unde op the ula se rst tnua io an. nd nc Hla ow eb do e trrv e for ends r, ctehe w trr it e ehin nd iss a a p op ne nd ula ctehe s tsa ion cohor arnt y d icis ipa tinc tts m etdion to b im ayp b ae c te on 2. Employers may get the upper hand. The Great Resignation has led to tightness in the labor market and c wom ortp h tr any am cbk a e ing d ne e fit b to e st the wre uc lp en te ur m la et p s a eloy (nd or er s p y re oung tla ire n. m e re)nt B a pb ay tt e Broome ns. rs and early (or older) Baby Boomers. World Insight About the Great challenges with retention and acquisition of talent. As noted earlier, within some worker segments, this has The Great Reshuffle has had a mixed impact on minorities. It is also important to note that the Current macroeconomic factors have resulted in significant market turmoil and volatility of retirement balances. The positioned those employees to negotiate terms in job Resigna pursuits. De tion’s pending on Im thepa path for ct on ward, W if infl ork ation , pandemic resulted in a divide for many minority population cohorts disproportionately experiencing job markeE t B aE RI ca tiv ’rs Re ly it yB e oome tir xpe em re ie rs t nt nc e Se end dc tur thus o itha y fa R ve r e sea in 202 acc rum ch C 2 ula e m nt taey e d r ha g (RSRC rv ee a ta en r) r im is e ta p ir a e sep cm t e on ant ra e t sa e m v t pings th hin loyk e e ta b a nk e n la ha wv it te ihin or B. oome A Ess BRI etr, sv t a he dlue ue m s ha tis o si the on ve e of cm om ploy e dm ow ent n Employers Adapting and Responding continues an upward trajectory and/or a recession takes hold, employers may regain power. We could see departures, job losses, and pay gaps. However, there has been a significant recovery among certain groups. considw erhic a db is h is d ly rupti whic on ed h ma ic ca atus eyd e ha d to b vunde y e tahe n im r s gtlob a pnding ac atl fina on re w nc tor iria ekm l c for e rnt is cis e sa e av x s w ings a it a end ll and re s t-he spe ent C rnding y OVI , as w D - p19 a etllt e p ara s ns nde re us tir m ing eic m . e e Ot nt mhe p pir a ric tc ta ha el a rns lle nd .nge For sus t r e ve he xa y m laptle e , Benefits, and Retirement Trends employers taking more corrective action, slow or freeze hiring and/or instigate layoffs, or even pause in For example, the Black American labor force participation rate increased between 2020 and July 2022 among retirem de ant t Baoome , ca onfide s w r ecll a ohor nce s si p t lun m faula cg ee tinc d ions in 200 lude . Thi t9, follow he s unde fact rtst ha ing atnding t the hey c, olla ain t re p ur tse he n, of fir pr st tov he ride e fin als a a dnc e fin fia rae l ma m d ecw ont rk oe rr k tibut s a for nd ion (D sol in t utions he C) w sa a av nd kings g e inf of or the em ne e G rdr a eta ion t , 4 adapting benefit profiles. This, of course, could be industry specific. After our roundtable discussed labor force trends, we transitioned to the role of employers — both what they have been those ages 60–64, driven by a dramatic increase in the labor force participation rate of Black males. The Recess pion. olic few y e dris h ca us ve si on acs t cess ha t t o ca dn b efin ee st d he belp neim fit p (r D ov B)e pout lans com (see es. figu Mem reb b ee rs of low)t,he and RSRC their a S re oc Aia m l e Sre ic ca ur n Funds/C ity claiming apitaagl e is doing to respond and what they can be doing as we go forward to adapt. Importantly, employers have a significant White House Council of Economic Advisors (CEA) notes that Black workers are, by and large, entering into Group dela, yA em d e to ripr ag is ee 67 Fina . Tnc heia se l, p Bo la pcula kRoc tion d k, Eis m tinc pow tions er Re mte ira en mteha ntt, e J.P m. ploy Mor eg rs m an, aMe y ne rce erd, tN o Ea FE nt, ic Pipa GIM, te d ifferent work “ The Great Resignation” is a term coined in April of 2021 by organizational psychologist Anthony Klotz, who predicted 3. Hierarchy of the next dollar will be fluid. Employers will shift focus on establishing with care how to get role, but they cannot be expected to solve for everything. The main employer stressor driving activity and planned higher-wage industries than the ones they are leaving. Princ and ipa re l Fina tirem nc ent ial G partoup terns , SS& from C Te latc ehnolog Boome iers, s. a nd Transamerica Retirement. Special thanks to Lorie that the COVID-19 pandemic would lead to pent-up resignations. For workers ages 55–64, this seemed to be playing responsetshe is m the ost a b va ililue ty tout o at of tratche t a nd dolla rerts spe ain ta nt le.nt Thi . The s will tight be tla ailor bore m d a to rkindiv et haidua s hel w ight orekne for d cte his s w foc ithin us c co onsi mpd ae nie rab s ly — . e.g., Overall, how confident are you that you (and your spouse) will have Latham for facilitating this discussion. out during the early pandemic, as viewed in data from the Bureau of Labor Statistics. Between December 2019 and reviewing the marginal value of retirement benefits such as employer match compared with allocating those E mployers are challenged to balance their time, attention, and budget to solve for the demands of their work force and enough money to live comfortably throughout your retirement years? However, at the same time we find that Hispanic Americans ages 60–64 saw their labor force participation rate Decembe drolla 20r 20 s t , o as a help naw lyit ze h ch d bild y t he ca rE em or p loy emeeer g Beenc neyfit sa Re vings sea. rcThe h C eknt ey e rq ( ue EB st RI ion w ), pa ill r tb ice ipa : W tion r hat a ist e the s d r bop est p e w da fr y om to a7 lloc 2.8 ate keep business moving. 2022 Retirees n=1,132 Percentage of Private-Sector Wage and Salary Workers Participating fall substantially below its 2019 level as of July 2022. And the CEA also noted that some Black workers have percent to 71.4 percent for those ages 55–59 — the lowest since 2015. Participation rates dropped from 57.2 percent in monies based on an employer’s work force? shifted into in indus an E trie mploy s such a me s nt ag-rBa icult sur ed e — Re atir geeme nerally nt lo Pw la -w n by age indust Plan rTy y — pe, whil 19 e 79 shi – ft2019 ing away slightly from 1 2019 to 56.6 percent in 2020 for those ages 60–64, the lowest since 2016, as shown in the figure below. Theme #1: Finding the right benefits balance. other high-wage industries such as mining. Impac 45% t of an Evolving and Revolving Work Force 4. A version of remote work is here Very co to nf st idena t y (for th Veo ry soe in r somd ewh us attries confide nw t here it is possible). Regardless of 100% economic cycles, balance of power, or benefit evolution, the consensus is that flexibility and remote working H owever, since 2020, a rebound has occurred: participation rates rose in 2021, ending the year at 71.7 percent for Salary is an important part of attracting and retaining talent, but perhaps of equal importance and focus are the non- Theme #2 Importance of work force exit…and re-entry. 90% 40% patterns are now a structural part of our work force. While in-office work will likely still be expected to some those ages 55–59 and 57.1 percent for those ages 60–64. By July 2022, labor participation settled at 57 percent for EBRI’s RSRC partners started by evaluating the impact of an evolving and revolv82% ing work force, noting several key 80% 80% compensation-related benefits that are growing in focus. These include retirement planning tools and advice, 79% 77% 77% degree, employers in most industries will need to figure out how to adapt working environments away from 76% t those hemea s w g 80% ehe s 55 n it –59 com and es a to t 73 the p c eom rcep nt le for x topic those of a la gb eor s 6 for 0–c 64 e . trIe 75% n o nds the — r a wll p ord oint s, p 75%ing artic to ipa an tion le expev ce ta lst ion o are now f con a tinu t ore d jus t below organizational culture (e.g., diversity, equity, and inclusion), flexibility regarding how retirement benefits can be taken, 70% 71% The number of people who 70% resign and leave the work force is studied with care. However, rarely are we as attentive to 35% relying on people together in the office full time. This may also lead to global employees — or could lead to the highs since 2010. evolution and change. 67% work env 70% ironment flexibility (e.g., remote working, unlimited PTO), caregiving options, better job titles, and even pet 64% the other side of this equation — people who are re-entering the work force. Are these individuals holding out for outsourcing of jobs to nondomestic workers. care or pet-friendly work environments. Employers are having to be creative as they work to bring in talent and fill jobs better conditions and plan to ultimately return to the work force? Are they on the fence? Or are they permanently 30%60% T heme #1: Observed labor force trends are specific to population cohorts. in order to compete as well as find ways to ensure employees have the right work-life balance, are in a position of separated from the work force? Many take the view that retirement is no longer a binary concept and that fewer people 50% financial security, and are on track for retirement to avoid work force management issues later. Conclusion retire overnight — again, data from the Retirement Confidence Survey show that workers continue to be much more 25% Observed labor force trends do not cut across population cohorts evenly, which will have an impact on how employers 40% likely to expect to work in retirement than retirees actually do. Civilian U.S. Labor Force Participation Rates for Those Ages 55 –64 42% 40% prepare and respond. Below are key trends that may have a 39% material impact on work patterns and benefit needs. Theme #2: Change in focus. All told, perhaps the age-old quote by Heraclitus, “Cha 37% nge is the only constant in life,” applies to our present and future 20% (Unadjusted) 30% 35% 34% 33% 32% 32% 75% 31% c ircumstances. Our RSRC Partner discussion uncovered a series of both existing and ant 30% icipated changes that have and Do you think you will do any work for pay after you retire / Have you 28% 27% 20% Uneven balance of power? While it can be debated, largely speaking, through COVID and due to the tight will continue to require both employees and employers to evolve and adapt to a shifting workplace. The themes In th15 e % days before the pandemic, employers were focused on advancing retirement preparedness and even buying out worked for pay since you retired? 20% discussed la b by or our ma r pk aertt, ne er m s pha loy ve ee tshe ha pvot e em nt aia rg l ina to lly me ha anin d a gn ful uly p pim erp h aa cnd t the re la wta iv ye w te o a ell t mp hin loyke r asb out in m w any ork indust arrang rie em s. ents, higher-c10% ompensated employees in favor of lower-paid employees. However, there has been a shift in focus with Workers planning to retire, Retirees total However, there are important nuances to this insight related to a longer-term power imbalance: The RSRC benefit profiles, and retirement planning and patterns. employ 10%ers now emphasizing overall financial wellness — including emergency savings and student debt. Additionally, 0% 70% Workers (n=1,345) Retirees (n=1,132) members noted that some employee cohorts benefited more than others during the pandemic and that the post-pandemic 19 c 93 hild 1c 9a 9r 4e ha 19s b 99 een 200a 4n ar2e 0a 05 in w 20hic 09 h e2m 01p 5loye 20r1s a 6 re2 0 p 1r7oviding 2018 mor 20e 19 flexibilit 2020 y a 2nd 021 bene 202fit 2 s. Employers ability to make demands has not been even among all worker segments. Indeed, EBRI research finds that 5% are faced with having to understand their unique work force and tilt benefits in the direction of tailoring to their unique Source: 2022 Retirement Confidence Survey 70% those remaining out of the work force by 2021 were disproportionately Americans without a college degree. In needs. Net: Yes 27% particular, among those without a high school diploma, the decline in the number in the labor force from the 0% 65% end of 2019 went from 670,000 at the end of 2020 to 1.1 million at the end of 2021 and 1.2 million by July Theme #4: The need to solve for income. Theme #3: Retirement income increasingly imperative. 2022. Furthermore, the number of Americans with som 15% e college — but not a bachelor’s degree — who were Yes, full time Defined Benefit Only Defined Contribution Only Both 2% out of the labor force in July 2022 vs. the end of 2019 reached 3.9 million. In contrast, the number of The ever-growing need for retirement income solutions with emphasis on help in spending remains front and center. Employers remain keenly aware that individuals have difficulty understanding how to translate their DC balance into a Source: U. S. Department of Labor Form 5500 Summaries through 1999. EBRI estimates 2000 –2019 using Bureau of Labor Statistics, Current Population Survey, 60% Americans with a bachelor’s degree or higher who were in the labor force increased by 2.8 million by July 2022 and U.S. Department of Labor data. The study of the way people use their retirement balances, the role of required minimum distributions (RMDs), and reliable income stream, and this can be a force that derails retirement. Employers are offering tools that illustrate 2 compared with December 2019. 34% observed trends of spending all put a finer point on this need. For example: spend-down strategies over time, impact Ye on s, b paa rtla time nces, and projected income. As importantly, employers are getting 16% c loser to offering retirement income solutions that assist retirees in their drawdown strategies. Change in Labor Force Participation by Education Level, 2019 – July 2022 55% • R EB ea RIli r ty ese vs ar . cih finds ntentio tha nst. fA ec w ce or r d tha ing n o to ne EB -q RI ua ’s Re rtert ir of em indiv entidua Confide l retir nc em e e Sur nt vaecyc, ount half of (IRA w) or ow kene rs res a xpe gc ets 71 or to retir e at 3% 5 old agee r65 w e orre la found ter, diff to eha ring vYe e fr s, w o bit m othdr h ftuhe lla aw n m dn pa aa rt jor n a timit em y of ount re tfr ire om es w the ho ir a Tr ctaua ditlly iona rel I tirRA ed e in e arlixc ere tss ha of n a tg he e ir65 RMD . Thi .s observed Theme #4: Engagement and communication should not be overlooked. 2% No High School Diploma 1.2 million • d Re issea conne rch a ct ls fro om fin w ds t haha t m t afor ny hous worke ehold rs ps t lan to d aking o IRA vs. d wis ha trib t tut he ions y ac p tua rior lly t o do t he ca n b agee w ahe ttribut n me ini dm to um w or dis ke trribut s’ ab ioili ns ty a to rea ff reor quir d te o dr,e a tir ve er a eg ae rlie spe r tha ndin p ng la isnne consi d. d Be ut ra it b ly ca la n a rgls er o tb ha e n due av etr o ag ne e. ga Attiv aeg e fa 60 ctor , su s, suc ch house h as w hold orks fa ha tigue ve a, n poor Employers are working to keep education and engagement simple, timely, and action oriented. At the same time, 50% 19% Some College 3.9 million a he dd alt ith, iona fal $4,12 mily ne0 in eds, spe or nding being , le ort 7.6 p go bye r the cent ir e m m or ploy e tha er.n W aha ver ta w gill e. ha Thi ps e pen if xtra m sp or ee nding rece nt pe e rsi conomi sts thrcoug h age 71, Yes, seasonal/sporadic diverse work 20 fo 10rces c 20 a11 ll for e 20 duc 12 ation a 2013nd enga 2014geme 20 nt 15 camp 20 a16 igns tha 2017 t are t20 ailor 18 ed t20 o 19 the ne 20 ed 20s of c20 ohor 21 ts a Jul cc -2or 2 ding to 7% 6 c wiritch a umn a stav nc ereasg s euc ad h a dits high ional s ip nfl ending ation a of nd 5.3 p mare krecte tnt ur for moil a ll sl y ow ea ror s c rom eveb rine se t dhis . trend? Does this result in their age, gender, race, ethnicity, and more. This is a critical path that must be leveraged to impact and influence 55 –59 60 –64 • d Ais t r the upti sa on mfor e t im ote he , r r eg tir en ee er s t ate ions nd , to wrho epo ar rte tsee hatk a ing sta to tea dd rv ea tir nc ee m in t enthe goa ir c lsa r is e e to rs? spe Or nd is d the owrn a e e vsm en a all rpeor alis tion o tic f Bachelor’s Degree or Higher 2.8 million employee behavior and, ultimately, financial outcomes. 7 30% p the a So thw ir urc a ea ss : U.S. y efor ts, spe Dep su artm ch r e nd nt oe f none - Le ab nt or, r y Bu a t re b a y aull, o B of a Lb arb y o g r B r Sta ow oome tis tit che s,r "L s se ir a ba oss r e Fo k e rc ing te s. Sta ttio stir ce s fro ga min p the Curre riorn t e Po m pp ulloy ationm Su erv nt ey ,"op http psor ://w tw uni w.bt lsie .gs ov? /c p s/ No 73% Source: Bureau of Labor Force Statistics. A Little Foreshadowing… 5 Copeland, Craig, “EBRI IRA Database: IRA Balances, Contributions, Rollovers, Withdrawals, and Asset Allocation, 2017 Source: 2022 Retirement Confidence Survey Update,” EBRI Issue Brief, no. 513 (Employee Benefit Research Institute, September 17, 2020). 6 As our roundtable concluded, we conducted a lightning round and asked our RSRC Partners to list themes they expect VanDerhei, Jack, Kelly Hahn, and Katherine Roy, “In Data There Is Truth: Understanding How Households Actually Support 3 to be the key areas of influence in t he coming 12–18 months. S p Se end e jing ob o in pe Rning etiresme dant ta, ” fro EB m RI B ure Issue au Bri of e Lfa,b no or . S531 tatis(tics Emp fo loy r the ee Be hig ne h fit peR rc ee snta earc gh e Ins of job titute op,e Jni un ng e s24, in the 2021) ac.c ommodation and 7 1 fo Cop Louc d a s es e la ,rv nd Lic o,e ri, Cr ind “a W ig us hy , try “L Do a at b P o Tab e r o Forc ple le e 1. 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