Eighteen percent of workers reduced their 401(k) contributions and/or personal savings in the past year, CareerBuilder found in a survey. Thirty-eight percent do not participate in a 401(k) plan, individual retirement account (IRA) or any other type of retirement plan. Twenty-six percent did not set aside any savings during the last year.
Twenty-five percent of workers said they were not able to make ends meet each month in the past year, and 20% have missed some payments. Seventy-one percent of workers say they are in debt, and among this group, 56% worry they will never be able to climb out of that debt.
Seventy-eight percent of workers are living paycheck-to-paycheck, up from 75% last year. Even for those making $100,000 or more a year, 9% say they are living paycheck-to-paycheck. For those earning between $50,000 and $99,999, this is the case for 28%.
“As an employer, your employees’ financial problems become your financial problems,” says Rosemary Haefner, chief human resources officer for CareerBuilder. “If workers are constantly thinking about their financial struggles, their quality of work can decrease.” If employers offer a 401(k) match or host financial planning seminars, they can allay some of these financial concerns, she says.
Only 32% of workers stick to a budget, and 56% save $100 or less a month. A mere 4% save between $751 to $1,000 a month, and a scant 10% save more than $1,000 a month.
Harris Poll conducted the survey of 3,462 employees for CareerBuilder between May 24 and June 16.