Today's retirement confidence numbers show how nervous employees are about securing their financial futures. But even before the recession, workers weren't exactly financial Einsteins. Now that economic conditions are working even more against them, this month's National Financial Literacy Month comes along at the perfect time.
“When money gets tight, a strong financial foundation is key to ensuring that you don’t get in over your head with uncontrollable debt,” Cate Williams, VP of financial literacy for Money Management International, says.
MMI had laid out 30 steps (one for each day this month) on the path to financial wellness. My apologies for not getting this out two weeks late! But surely, it's better late than never, and there's no reason you can't share these tips with employees into May and beyond.
Showing posts with label retirement confidence. Show all posts
Showing posts with label retirement confidence. Show all posts
Tuesday, April 14, 2009
News You Can Use: Retirement confidence at record low
EBRI's annual barometer of Americans' retirement confidence shows the recession has worn away workers' assuredness that their golden years will be happy, healthy and financially secure.
Released today, the 19th annual Retirement Confidence Survey posts a record-low 13% of respondents who say they are very confident of having enough money to live comfortably in retirement, down from 18% in 2008 and 27% in 2007. Also, in addition to more employees expecting to work full-time longer (89%), more respondents also are including part-time work into their retirement plans (72%).
“Our survey first picked up the drop in retirement confidence last year,” says EBRI's Jack VanDerhei. “Given the uncertainties that exist about economy, it is no surprise the downward trend has continued. By any measure, the two-year results amount to a very significant drop in workers’ and retirees’ confidence in their retirement prospects.”
To help shore up retirement savings, employees say they are:
* Reducing expenses 81%.
* Changing investments 43%.
* Working more hours or a second job 38%.
* Saving more 25%.
* Seeking financial advice 25%.
Have you noticed that the recession has depressed employees' retirement confidence and/or contributions? What are you doing to help them better prepare? Comment and let me know.
Released today, the 19th annual Retirement Confidence Survey posts a record-low 13% of respondents who say they are very confident of having enough money to live comfortably in retirement, down from 18% in 2008 and 27% in 2007. Also, in addition to more employees expecting to work full-time longer (89%), more respondents also are including part-time work into their retirement plans (72%).
“Our survey first picked up the drop in retirement confidence last year,” says EBRI's Jack VanDerhei. “Given the uncertainties that exist about economy, it is no surprise the downward trend has continued. By any measure, the two-year results amount to a very significant drop in workers’ and retirees’ confidence in their retirement prospects.”
To help shore up retirement savings, employees say they are:
* Reducing expenses 81%.
* Changing investments 43%.
* Working more hours or a second job 38%.
* Saving more 25%.
* Seeking financial advice 25%.
Have you noticed that the recession has depressed employees' retirement confidence and/or contributions? What are you doing to help them better prepare? Comment and let me know.
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