Nearly all Americans accept personal responsibility for funding their retirement, yet less than a third have taken any steps to calculate exactly how much it might cost. A new report spells out how employer-provided tech tools could go a long way in improving 401k participants’ ability to plan and save for their post-work years.
Research from Mercer found 71 percent of adults think they’ll have to work past what was once considered the typical retirement age—or may not get to retire at all. Reasons for anticipating working later into life vary, but economic concerns rank high. In fact, data show only about a quarter (26 percent) of adults are confident they can save enough to retire successfully.
In the report Healthy, Wealthy and Work-Wise, Mercer suggests that employers provide digital tools in order to help employees help themselves achieve a secure financial future.
Survey results indicate workers would overwhelmingly be on board.
First of all, the majority (85 percent) trust their employers to give them useful, unbiased advice on planning, saving and investing for retirement. Plus, nine in 10 (86 percent) agree that improved benefits or access to benefits would positively impact their finances. It would likely pay off for businesses to boot: employees think such improvements would lead to greater job satisfaction and loyalty, as well.
What’s more, across all generations, 85 percent of workers have an interest in digital finance tools, and most are comfortable with their degree of technological savvy.
Millennials, of course, lead the charge when it comes to the desire for tech solutions—95 percent are interested in them. But an impressive two-thirds of all adults surveyed said they feel comfortable managing their savings digitally with mobile banking or smart apps. Employees are specifically asking for finance tools that are secure, easy-to-use and jargon-free.
To conclude its report, Mercer offers employer-sponsors the following suggestions:
- To take action, employers need to transform savings into an engaging consumer experience rather than an onerous financial service, and make it achievable and interesting through simplified language, useful tools and the ability to track savings and progress in real time.
- To leverage technology, digital tools (as well as plans and benefits) must not be one-size-fits-all and need to be for more than information and basic modeling. Technology must utilize data to make offerings more personalized and relevant to individuals and include the ability to make immediate transactions.
Jessa Claeys is a writer, editor and graphic designer.
