Early-Career Workers Make Retirement Enrollment Decisions With Little Guidance

Many early-career workers are making important financial decisions that are not always backed by strong understanding, according to the latest annual survey by the SPARK [Society of Professional Asset Managers and Recordkeepers] Institute and consulting service Corporate Insight Inc. The financial literacy study included a subset of 960 recently hired adults, aged 18 to 35, who had been in their current jobs for fewer than five years, and it found an especially visible gap in retirement planning.

Among those who had not yet opened a retirement account, their reasons varied. Some cited structural barriers such as limited access to employer-sponsored plans (21%), while others pointed to financial pressures (17%) that forced them to prioritize rent, bills and other immediate needs. Among hourly paid respondents, only 31% said they had a retirement account.

Another 20% of respondents said they believed they still had plenty of time to start, reflecting a “later is fine” mindset that can shape early saving behavior. Many respondents without accounts said they thought age 30 to 34 was the right time to begin saving for retirement, highlighting a disconnect between employee perceptions and advisory guidance that encourages starting much earlier.

Among those who were saving, participation patterns showed both initiative and inertia. Most (59%) enrolled themselves in their workplace retirement plans, while 39% were automatically enrolled by their employer. Among auto-enrolled respondents, nearly two-thirds remained at the default contribution rate, though about 30% chose to increase their savings.

Contribution levels remained modest: About 47% of respondents contributed between 1% and 5% of their pay, while 41% saved between 6% and 10%. Higher financial literacy was associated with slightly higher contribution rates, with those individuals more likely to save at least 6%. Men and workers in their first full-time job also tended to contribute more on average.

Roughly half of respondents (49%) still had a retirement account from a previous employer, but 38% of those had not rolled those funds into a new plan. Among those who did not complete a rollover, nearly three in 10 said they were unaware that transferring their savings was even possible.

The survey also highlighted limited workplace financial education. While many young respondents said they wanted help understanding their benefits, fewer than half reported receiving retirement education from their employer. Only 41% said they received enrollment materials, and fewer than 30% said they had access to financial wellness programs or adviser meetings. More than one-quarter (27%) said they received no financial education at all.

Most respondents (57%) said they believed employers had at least some responsibility for supporting their financial well-being. However, confidence in that support was much lower—just 33% said they felt very or extremely confident that their employer was actively helping them navigate their financial lives.

The survey was conducted from February through March.