More than any other generation, its members are receptive to in-plan guarantees.
Data & Research
Retired households with less than $200,000 accumulated in a DC plan at retirement tend to spend down only about a quarter of their assets during the first two decades of retirement.
The vast majority of employees that participate in both 401(k) and employee stock purchase plans say it is important to take advantage of financial guidance made available by their employer.
Financial wellness programs are here to stay, and they are a big part of the employee benefits landscape of the future, says Craig Copeland, a senior research associate at EBRI.
Kevin Boyles at Millennium Trust says companies have been responding to the pandemic with exceptional agility—driven in no small part by the expectations of their Millennial workers.
And more are seeking advice from a third-party professional, especially as open-enrollment season begins.
Many are already implementing strategies to drive down expenses.
They expect 44% of their retirement income will come from their 401(k), according to Charles Schwab, and half said they would benefit from financial advice.
A mere 17% of women say they are very confident they will be able to retire comfortably, according to the Transamerica Center for Retirement Studies.
They also say they are not making headway on their retirement goals.
A Voya survey also found that 54% of employed Americans plan to work in retirement as a result of COVID-19.
These opportunities also do not tend to offer benefits.
The move comes even as an American Consumer Credit Counseling (ACCC) report finds more workers are increasingly confident in their employment stability.
As the coronavirus pandemic continues to lead to an increase in financial concerns, a Retirement Advisor Council guide suggests key financial well-being strategies.
Many are considering early retirement or reducing their retirement savings.
The ratio of the combined 401(k) and IRA balance to the average 401(k) plan balance was 2.48.
It reports one of the big issues is that women are overrepresented in low wage professions.
More than half of Americans are earning half or less than half of their pre-pandemic income, and 31% have lost their entire income, a FlexJobs and Prudential survey has revealed.
Fidelity reports that the average 401(k) plan balance was up 14% between the start of April and the end of June.
Retirement Equity Lab says if these exits continue, they will increase old-age poverty and worsen the recession.