Americans Support Retirement Security Public Policy

Eighty percent of American workers surveyed said they would like to hear congressional candidates discuss retirement security.  

American workers rank retirement security as the top issue they want congressional candidates to talk about more on the campaign trail this year, according to a survey by Prudential Financial. Eighty percent want to hear about retirement security; 75%, job security; 74%, taxes; 70%, workforce development; 67%, the minimum wage; and 61%, the cost of college.

Seventy-two percent are concerned about their financial security in retirement, 54% say they will have to delay retirement due to inadequate savings, and 65% wish they had a better understanding of how much they will need to save for retirement. Forty percent say financial stress is causing health issues or loss of sleep.

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“American workers across the board are concerned about their financial security in retirement, and they’re looking for help wherever they can get it, including from their employers and policymakers,” says Ann Kappler, deputy general counsel and head of external affairs at Prudential.

Twenty-seven percent have a second job, and 29% say daily expenses curtail their ability to save for retirement. Forty percent have cut back on retirement savings because of a financial issue.

On average, workers spend 3.6 hours a week managing personal financial issues while on the job, and 30% say financial stress has impacted their job performance.

Seventy-eight percent support Congressional legislation that would permit small businesses to join together to make it easier to offer retirement benefits to employees. If given the option, 56% would turn part of their retirement balance into guaranteed lifetime income payments. Seventy-six percent are in favor of requiring retirement plans to provide participants with estimates of their income in retirement.

Sixty-six percent said they are more likely to remain with an employer that understands their personal financial situation. Fifty-seven percent said they are more committed to employers that offer free financial education on key issues like retirement planning, and 58% said when they feel financially secure, they are more productive at work.

“The Retirement Enhancement and Savings Act contains several important provisions designed to increase access to workplace retirement plans, retirement planning information and lifetime income options,” Kappler says. “The bill has broad, bipartisan support among policymakers on Capitol Hill, as well as among retirement experts. And, as our survey shows, these sensible provisions are widely supported by those who would benefit the most: American workers.”

Morning Consult conducted the survey in April for Prudential Financial.

Americans’ Greatest Financial Regret: Not Saving Earlier for Retirement

That is followed by not saving for an emergency, and taking on too much credit card and too much student loan debt.

Eighteen percent of Americans regret not starting to save for retirement earlier, Bankrate.com found in a survey. Other financial contritions? Not saving enough for emergency expenses, cited by 14%, taking on too much credit card debt (10%), taking on too much student loan debt (8%), not saving enough for their children’s education (7%) and buying more houses than they can afford (2%).

Citing data from the Federal Reserve, Bankrate.com says that half of middle-income Americans have a retirement account, with a median balance of $25,000. Among those between the ages of 55 and 64, 60% are saving for retirement, with a median balance of $120,000.

Additionally, Bankrate.com says an emergency fund should be six months’ worth of essential expenses and estimates that for a household in a major metropolitan area, that’s $23,000. Federal Reserve data shows that the average emergency fund that Americans have is less than $4,000.

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The Bankrate.com survey found that among those who have a financial regret, 49% are doing something about it. However, 25% have no plans to address their worries, 10% plan to do something within the next six months, 9% say they are taking action in the next six to 12 months, and 6% say that after a year, they will address the issue.

“Time is your greatest ally when saving for the future,” says Greg McBride, chief financial analyst at Bankrate.com. “To workers of all ages, there is no better time than the present to increase your 401(k) contribution or fund an IRA [individual retirement account].”

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