In our survey, 95% of workers indicate they want financial help: education, advice, counseling. For those in the heart of the financial vortex, this need is most acute. About one in five Gen X and Millennials said financial advice is extremely important to retirement preparation.
As an industry, we must help individuals create more personalized paths to retirement that account for these challenges. We can provide outcome- and goals-based resources to ensure investors have the right targets, utilizing the right blend of human and digital support to account for changing preferences. Helping people pivot, adjust their savings and invest in effective strategies will be critical to aiding them in successfully reaching their retirement savings goals.
What lessons does our survey imbue for employers or companies who provide their employees with DC retirement plans such as 401(k) plans, and what can they do to help employees retire well?
Not only do employees want help, but they specifically look to their employers for that help. Employer retirement programs were cited by workers as their top source of education about developing retirement plans. For employers, providing retirement planning services is not just a nice to have, it is a must have, as employees now expect that assistance from their employers.
Our survey also revealed how much stress the financial vortex imposes: 58% of workers were stressed about managing retirement savings. Gen X reported the highest stress (65%).
Many studies have documented the impact on workers from increased stress, including increased absenteeism and lower productivity. Helping employees deal with the financial vortex, lowering their stress levels and breathing easier, should be a win-win for employees and employers.
Michael Moran CFA is Senior Pension Strategist, Goldman Sachs Asset Management