Employees Want Congress and Employers to Help Them With Retirement Readiness
Seventy-seven percent of Americans think Congress should do more to expand access to retirement plans, while 83% favor making it easier to save for retirement, and 69% think policymakers should support solutions that convert savings into an income stream.
The Prudential American Workers Survey found that 70% of American workers have felt stressed over their financial security in the past year, and 65% expect they will continue to feel financially stressed over the next five years.
Sixty-eight percent are concerned that they will not have enough saved to live comfortably in retirement, and 82% of working parents are worried about their children’s financial security as they grow up.
Workers at companies of varying sizes were asked whether their employer provides them with the benefits they need to feel financially secure. Only 39% of those working at a small business said yes, whereas 60% of those working at a mid-sized company and 63% of those at a large business said yes.
Prudential notes that the Retirement Enhancement and Savings Act would make it easier for small businesses to join together in lower-cost open multiple employer plans.
Seventy-seven percent of Americans think Congress should do more to expand access to retirement plans. Eighty-three percent of American workers favor making it easier to save for retirement, and 69% think policymakers should support solutions that convert savings into an income stream.
Asked what policies they would most like Congress to enact, 29% said making retirement savings easier and more accessible, 23% said increasing school funding/job training, 14% said increasing infrastructure funding, 11% said encouraging small business financing, and 9% said creating and enhancing emergency savings.
Asked whether they would use a lifetime income option if it was offered to them, 61% of American workers said yes, up from 56% in 2018. Sixty-four percent would like to retire by age 65 or earlier, but 51% expect that they will be 66 or older when they are able to retire.
Asked what benefits support their well-being, 74% said retirement plans, 56% said life insurance, 35% said tuition reimbursement/student loan repayment programs, 31% said training and development programs, 29% said financial education, 29% said free meals, 24% said child or dependent care, and 23% said paid leave/caregiver leave.
Asked what is preventing them from feeling financially secure, 39% of American workers said their income is too low, 36% said they do not have enough saved for retirement, 32% said they do not have emergency savings, and 26% said the cost of health care.
Morning Consult conducted the survey for Prudential this past February.