"In addition to serving as a tax-advantaged means of accumulating retirement income, retirement plans can enhance productivity. Pensions strongly influence workers’ behavior, giving younger workers a compelling reason to continue working for their employer and encouraging older workers to retire on a timely basis. Empirical evidence indicates that pensions influence the type of worker a firm attracts and can help an employer attract workers who exhibit desirable behavior patterns."
An excerpt from the Watson Wyatt Insider.