The report also points to women and low-income
employees as the two other groups with the most room for improvement when it
comes to reaching a financially secure retirement. According to the report, just
17% of both women and Millennial workers and 10% of low-income employees said they are confident they will be
able to meet their retirement income goals.
Overall, one in five (20%) of those interviewed for
the report said they were on track to meet their previously determined
retirement benchmarks—up from 14% during the survey’s first
iteration, released in 2011.
A lower percentage of Millennials (29%) reported having used a retirement
calculator to project future income needs this year, compared with the 32% measured
in 2012. A smaller percentage
(84%) of low-income respondents reported participating in their workplace’s
401(k) plan than the 86% observed in 2012. Additionally, the number of
low-income workers feeling confident in their ability to reach income
replacement goals fell by 1 percentage point this year.
And even though a greater percentage of employees have indicated taking a
risk tolerance assessment or taking action to rebalance their investment
accounts, 61% of respondents indicated they have not taken the time to use a
financial calculator to conduct a future needs assessment.