More Workers Planning for Retirement

April 3, 2013 (PLANSPONSOR.com) - More American workers are planning for their retirement, according to the latest Financial Well-Being Index from The Principal.

Only 28% of respondents said they have not yet planned for financial security in retirement, down from 32% last quarter. Those working with a financial adviser are more prepared—75% of workers who use a financial professional are planning for retirement security, compared to only 49% of workers who do not use a financial professional.   

The Index also found more American workers feel secure about the country’s overall economic outlook. More than one-third of workers (35%) describe their economic outlook as optimistic, up from just 21% in the third quarter of 2012, the last time workers were asked their views on the overall economy. 

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However, American workers remain cautious when assessing their expectations for the next year. While 40% of workers think the economy will improve throughout 2013, a majority (60%) still believe the economy will stay the same or worsen. Additionally, 44% of employees are holding off from making long-term financial commitments, such as buying a home or a car, due to the current state of the economy.   

Of the 64% of workers who expect to receive a federal or state tax refund from their 2012 tax return, 46% plan to save or invest the refund, 38% will use it to pay down short-term debt, and 23% will pay down long-term debt. Fifteen percent will spend their refund on consumer products and 7% will spend on a big ticket purchase.   

The survey was conducted online by Harris Interactive in first quarter 2013 among 1,100 employees. View the full survey results and download an infographic at www.principal.com/wellbeing.

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