Despite being one of the most important elements of a compensation package, retirement benefits are often overlooked or misunderstood by employees. Many workers focus only on their take-home pay, unaware of the long-term financial investments their employer is making on their behalf. For HR teams and benefits professionals, bridging this knowledge gap is essential to reinforcing the full value of employment and improving financial confidence.
Employees Are Underestimating Their Retirement Needs
According to the Transamerica Institute, only 29% of workers have a written retirement strategy, and 45% admit to guessing how much they need to save for retirement. These numbers highlight a significant gap in planning and awareness, which can lead to financial insecurity later in life.
When employees lack a clear understanding of their retirement benefits, they may underestimate the importance of those offerings. Employer contributions to 401(k)s, pension programs, and other long-term savings vehicles often represent thousands of dollars in value each year, yet that value remains hidden if it’s not communicated effectively.
Why Total Rewards Statements Matter
Total Rewards Statements play a key role in helping employees visualize the full picture. A well-designed TRS outlines not only salary and bonuses but also includes employer retirement contributions, vesting schedules, and projected growth over time. This tangible representation of future value can build trust, improve financial literacy, and motivate long-term engagement.
When employees see how much their employer is contributing to their future, it reinforces a sense of security and appreciation. It also supports strategic goals like reducing turnover and boosting retention, especially among mid-career employees who may be evaluating their long-term employment fit.
How to Bring Retirement Benefits to the Forefront
To make retirement benefits feel more visible and impactful, HR teams can:
-
● Incorporate retirement data into annual or quarterly Total Rewards Statements.
-
● Provide retirement education sessions, webinars, or calculators to help employees plan effectively.
-
● Include personalized retirement contributions and projections in onboarding materials for new hires or candidates.
-
● Segment communication by career stage to reflect different savings needs and goals.
When paired with clear, consistent communication, these efforts can help employees better understand the value they’re receiving today while planning confidently for tomorrow.
Final Thoughts
In an environment where financial stress is high and long-term planning is more important than ever, clarity matters. Communicating the true value of retirement benefits is not just about transparency; it’s about equipping employees with the information they need to feel supported, valued, and secure.
For organizations looking to improve how they present compensation packages, Total Rewards Statements can be a powerful tool. TRS Express allows HR teams to deliver customized, data-rich compensation overviews that put hidden value front and center — especially the kind that shapes an employee’s financial future.
Explore how backstitch can help enhance your Total Rewards Communication Strategy.
