Companies are taking steps to give employees ways to protect their retirement savings from being eroded by inflation. A recent survey of 233 big companies by benefits consultancy Mercer found 46% offer or plan to offer an investment option that provides inflation protection.

Almost a quarter—24%—offer Treasury inflation protected securities (TIPS), according to Mercer, while 12% have an investment option that combines such asset classes as commodities, real estate investment trusts and TIPS. Another 10% of companies plan to offer an investment option that provides inflation protection within the next year.

Large companies are most likely to provide such an option. Mercer says 66% of companies with $1 billion or more of assets offer a protection inflation investment, vs. 37% of companies with plan assets of $250 million or less.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.