September 27, 2013 (PLANSPONSOR.com) – Describing Millennials as the “lost generation” when it comes to retirement planning, Financial Finesse has released its third annual report on the state of U.S. employee retirement preparedness.
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.