The world can be an uncertain place, and trying to navigate turbulent markets to prepare for retirement can be stressful.
Fifty-nine percent of Americans report that preparing for retirement makes them stressed. In a recent survey it was found that about six in ten workers have saved or are currently saving for retirement; however, there is a stark difference in savings behavior between workers who have an employer-sponsored retirement plan and those who do not have a plan. The study shows that 75% of workers with a retirement plan are currently saving for retirement versus only 12% of workers without a retirement plan. Seventeen percent of workers without a retirement plan reported not having saved any money at all for retirement, citing that it was too stressful trying to budget funds away from other priorities.
Workers who have an employer-sponsored retirement plan tend to have significantly more savings and investments than those without. Many workers feel they are doing a good job saving, but just four in ten workers have attempted to calculate how much they will need in retirement, and fewer still have attempted to calculate how much they would need each month, or whether they could cover health care costs or a large unexpected expense. One in three workers who tried to calculate how much they will need in retirement expect to need $1 million or more.
It was found that only 28% of those surveyed used a financial advisor, and one in four workers say they use their employer or information from work as a source of information for retirement planning. And seven in ten workers reported that they would find it helpful if their workplace offered education or advice on how to manage competing financial priorities or help with basic budgeting.
Lowered stress in the workplace has been shown to increase morale and productivity while reducing turnover. Having an employer-sponsored qualified plan can help prioritize saving for retirement as a part of a regular budget, and relieve the stress of planning for a successful retirement.