More than half of employees who are eligible to participate in their employer-sponsored retirement plans do not believe they will ever be able to save enough for a comfortable retirement.
Employers are also concerned about their employees’ eagerness to increase savings and their readiness to retire with a certain degree of security, according to Prudential Retirement’s (a business unit of Prudential Financial, Inc.) new research: Turning Employees into Lifetime Savers.
And it is not just those nearing retirement who are troubled. The research shows that one quarter of Millennials (those between 21 and 29) feel that they will not be able to stop working until they are over 70.
The research strives to alleviate a well-known but rarely acted upon problem: American’s lack of proper retirement planning. At this stage of the quandary, it is not a public awareness message about the importance of saving for retirement that workers need rather it is tactical and strategic information on how to do so: The research found that 88 percent of American recognize that saving for retirement is ‘a must’ they simply do not have the actual ability to do not have the ability to do so.
The gap between what workers realize they should be doing and what they are actually doing was summed up as lack of motivation. Turning Employees into Lifetime Savers seeks to utilize the principles of behavioral science to assist employers with engaging workers to the extent that they are able to take control of their financial futures.
One product of the research is the Lifetime Saver Commitment Profile which will assist employers in encouraging plan participants to properly save for retirement. The Lifetime Saver Commitment Profile has a built-in index which measures employees’ dispositions when it comes to saving. The plan sponsor can then tailor programs and tools that will hopefully prompt individuals to take the necessary actions.