2 in 3 Feel ‘On Track’ to Retire at Target Age, But Women, Minorities Face Barriers to Financial Wellness
About two in three (65%) of employed Americans “strongly agree” or “somewhat agree” they are confident they are on track to retire at their target retirement age, according to new research released this week from Voya Financial, Inc.
“Even when individuals do everything right—contributing to retirement plans, understanding tax advantages and engaging with employer benefits—they still feel as though they are falling behind.”
Kerry Sette, Voya Financial
Voya’s Financial Consumer Insights & Research survey shows 9 in 10 benefits-eligible, employed Americans who have a retirement plan “agree” or “strongly agree” they understand the pretax benefits of contributing to their employer-sponsored retirement plan, and more than 8 in 10 benefits-eligible, employed Americans “agree” or “strongly agree” that workplace benefits can help them prepare for retirement.
While most Americans recognize the value of employer-sponsored benefits, many—especially individuals who are part of underserved communities—continue to face barriers to financial security. Voya’s research revealed that among Americans, there are significant age and race/ethnicity differences in how much individuals say they need help understanding how to improve their overall financial wellness.
Gen Z (82%), Millennials (71%) and Gen X (61%) are significantly more likely than Baby Boomers (45%) to “agree” or “strongly agree” with this sentiment, as are those who are Asian, Black/African American or Hispanic/Latino (76%) compared to white (56%) individuals.
Additionally, women (88%) are more likely than men (81%) to “agree” or “strongly agree” their money doesn’t go as far as it used to. These insights support the need for personalized, inclusive financial guidance that meets individuals where they are.
“Even when individuals do everything right—contributing to retirement plans, understanding tax advantages and engaging with employer benefits—they still feel as though they are falling behind,” said “Even when individuals do everything right—contributing to retirement plans, understanding tax advantages and engaging with employer benefits—they still feel as though they are falling behind,” said Kerry Sette, VP, head of Consumer Insights & Research at Voya Financial. “This is especially true for women; caregivers; individuals who are Asian, Black/African American and Hispanic/Latino; along with younger generations, all of whom are navigating systemic challenges and economic pressures that make it more challenging to build long-term financial security.”
The research found younger generations—particularly Gen Z and Millennials—are far more likely to say they need help understanding how much to save for retirement (75% Gen Z, 66% Millennials versus 40% Boomers), that debt is limiting their ability to save (67% Gen Z, 64% Millennials versus 27% Boomers) and that they’re saving less for emergencies than they were a year ago (74% Gen Z, 70% Millennials versus 53% Boomers).
These emotional and financial stressors directly influence retention, as employees who feel unsupported or financially insecure are more likely to disengage or seek opportunities elsewhere. In contrast, the Voya research said organizations that proactively address these concerns through comprehensive benefits and personalized financial wellness resources are better positioned to retain top talent in today’s evolving workplace.
SEE ALSO:
• Blue Owl Entering 401(k) Market in Collaboration with Voya
• Voya Partners with Savi to Offer Suite of Student Loan Debt Solutions
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
