Unum expands retirement plans to help employees invest | EBA

Employees today demand more from their benefits and want a wide range of offers to support their present and future.

Retirement planning is an area in which employees seek solutions that will help them build a strong financial future. Financial services provider Unum is meeting this need by adding a new, affordable, professionally managed fund to its own retirement program, offered through Fidelity Investments.

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The benefit is designed to future-proof an employee’s retirement income as they near the transition from work to retirement, says Carol Gagnon, vice president of Unum Global Financial Wellbeing.

“One of the problems that employees struggle with is that we haven’t made it easy enough for them to leave the company, retire and move on to the next stage of their lives, transitioning to this stage,” says Gagnon . “We really want to address those employees who are starting their three to five-year life path towards leaving the company and retiring.”

The fund allows employees to invest their existing 401 (k) and other assets and then determine how they will use them in retirement. Employees can choose how often they receive withdrawal payments and have the option to receive money biweekly, similar to how they were paid while on the job.

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“The tools give them a calculation of how much they would get per month, week, or quarter,” says Gagnon. “And in addition to this distribution, the managed pension fund continues to invest the balance of this account for the employee.”

Beyond 401 (k), employees are looking for more guidance in planning their years after work. Employers are expected to provide the education and resources they need to achieve this goal.

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According to the Employee Benefits Research Institute, over four in five workers say that converting their retirement savings into a steady income would help their employer. A quarter of workers said their company pension would be better if there were more investment opportunities for people after retirement.

“Preparing for retirement can be daunting, but this solution makes me feel better prepared for the future,” one Unum employee said in a press release. “It gives me a sense of financial stability and will ease the transition into retirement.”

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