Data shows that only 20% of people 65 and older were in the workforce in 2016, yet 56% of workers plan to continue to work, at least part-time, in retirement due to inadequate savings, the Transamerica Center for Retirement Studies found.
This is setting their retirement savings back, with many investing in cash.
They are willing to cut back on going out or taking vacations in order to save as much as 50% of their paychecks.
Although credit card debt is keeping half of surveyed Gen Xers from starting to save for retirement, 63% say “everything will just work out” in their retirement years.
However, a survey found 53% of employees would like their employers to offer tools to help them improve their financial situation.
But 40% say the Great Recession has had no impact on their lives whatsoever.
The first step, AB says, is to replace TDFs from recordkeepers with open architecture, next-gen TDFs.
Sixty-four percent have financial goals.
Only half of retirees with debt are confident they will be able to live the lifestyle they want, but 70% of retirees without debt are confident.
Plan sponsors should be aware that many participants have assets invested with providers that do not serve their current plan, which has implications for measuring readiness.
Seventy percent of those with less than $45,000 in household income say they cannot afford to save for retirement.
This is in spite of the fact that 64% are very or extremely confident in their ability to make investment decisions on their own.
Yet, retirement savings accumulators, especially younger ones, are seeking help more than five years ago, research finds.
Baby Boomers’ average 401(k) account balance in June 2007 was $115,000, but those who continued to contribute to their account saw that balance grow to $315,000 as of this past June.
Many borrow from their 401(k) plan to cover a sudden financial emergency, Pew found in a survey.
PwC says there is a great need for financial wellness programs, as 53% of employees feel financially stressed, and this costs employers with 10,000 workers $3.3 million a year in lost productivity.
Employers will be able to help employees pay off their student loan debt.