Workers, shaken by the woes impacting the economy, have adjusted their visions of retirement according to a recent nationwide study.
The 13th Annual Transamerica Retirement Survey, based on responses from 3,600 American workers, found that the majority of respondents (56%) plan to work past age 65 and to continue working after they retire, (54%) despite workers’ demonstrated commitment to saving, fewer than two in five (39%) believe that they’re building a secure nest egg – thus reinforcing the need to redefine “retirement readiness” in a way that reflects financial reality.
According to the survey, although more than half of workers polled (57%) have a retirement strategy, only 12% have put their plan on paper. Of those with any form of strategy, fewer than one in six (15%) have factored in contingency plans for retiring sooner than expected and/or a shortfall in savings. What’s more when, asked how they estimated their savings needs for retirement, nearly half of respondents (47%) admitted to guessing.
Many workers (44%) expect to rely on savings from 401(k) or similar plans as their primary source of retirement income An overwhelming 90% cited an employee self-funded plan as important; more than half (53%) would be likely to leave their current employer for a similar job that provided better retirement benefits.
More than three in five respondents (62%) wanted information and guidance about retirement planning from their company. When asked what would motivate them to learn more about saving for retirement a majority (52%) cited a good starting point or educational materials that are “easier to understand.”
We’d be happy to help you provide your employees with effective financial planning guidelines for their retirement – just give us a call.