Most Public Sector Employees Feel They Lack Retirement Planning Support

A majority of public sector employees say they lack adequate support for retirement planning, according to a May 6 report from the MissionSquare Research Institute.

According to the data, collected in fall 2024, 60% of respondents said they needed more guidance on how much they should save for retirement, and more than 15% said they did not have a retirement plan at all.  

Despite the reported gap in retirement planning, more than half of workers said higher wages were the most significant factor in improving their retirement readiness.

“While increased compensation is certainly a driver of retirement readiness, financial education remains foundational,” said one of the report’s co-authors, Zhikun Liu, a MissionSquare Retirement vice president and head of the MissionSquare Research Institute, in a statement. “Empowering employees with knowledge about how much to save and where that money should come from is vital to helping them feel secure about their future.”

Meanwhile, respondents were divided regarding withdrawals: more than 20% said they would handle withdrawals independently, while 15% said they were unsure how they would manage withdrawals. 

The survey, conducted with Greenwald Research, consisted of 1,009 responses from full-time state and local government employees, gathered between September 13, 2024, and October 4, 2024.

“It remains essential for policy-makers, employers, and financial professionals to understand and address the financial challenges facing public workers, including a growing need for personalized financial guidance and policy solutions,” said Liu in the statement. “These individuals dedicate their careers to serving our communities, and they deserve access to the resources necessary for a financially secure retirement.”