Financial Finesse: Employees Shifting Focus to Long-Term Planning

However, with the increased focus on retirement planning, employees feel no more prepared than they did a year ago, most likely due to a growing awareness of just how far behind they are and mounting concerns about increases in health care expenses, taxes and inflation eroding retirement savings, the report says.

In 2011, employees reported reduced financial stress, with 19% indicating “high” or “overwhelming” levels of stress compared to 32% in 2010 and 33% in 2009. The survey says the reduction in problematic financial stress represents a “significant improvement” and provides evidence of a continuation of a trend that was noted during the 2010 Financial Finesse Research Year in Review.

However, even with this positive trend, financial stress still remains a pervasive problem with 84% of employees reporting some level of financial stress and many studies showing that financial issues are both the leading cause of stress and one of the most damaging on the body.

Retirement preparedness remains unchanged from 2010, as only 17% of employees indicated they are on track to replace 80% of their current income (or their own goal), the report says.