Just like higher-education employees, most Americans wants access to employer-sponsored retirement plans.
New findings from Voya Financial show that a workplace retirement plan is just as important for employee retention as a competitive salary and flexible work arrangements. Sixty percent of employees surveyed said they were more likely to stay with their current employer if they offered an employer-sponsored retirement plan, compared to 64% who said they would stay for a competitive compensation package and 63% for flexible work hours.
In addition, nearly half (49%) are more likely to stay with their current employer if they offer access to voluntary benefit offerings like critical illness, hospital indemnity, disability income, accident insurance, etc., and 47% are more likely to stay with access to health spending and savings accounts, like HSAs, FSAs, and dependent care accounts.
“We know that the COVID-19 pandemic has forever changed the workplace benefits and savings landscape and, as a result, many employers continue to evolve their offerings to support their workforce, particularly as an opportunity to attract and retain talent in today’s competitive market,” said Heather Lavallee, CEO, Wealth Solutions, and president and CEO-elect, Voya Financial, in a press release. “At the same time, amid new offerings such as flexible or hybrid work arrangements, employers need to remember the employer-sponsored retirement plan is a critical component to helping individuals prepare for a more secure financial future.”
The findings come at a time when workers are voicing concerns about inflation and its impact to their long-term savings. In October, The Nationwide Retirement Institute reported 39% of investors are optimistic about the financial outlook in the next year, down from 49% in 2021. Additionally, Nationwide research found inflation was the main financial concern for investors in the next 12 months.
The Voya report reveals that due to the market environment, over three-quarters (76%) of individuals are extremely likely or likely to spend less on non-essential items next year, such as meals out, vacations, or luxury goods.
Instead, workers are putting their money towards their savings for the long-term. Nearly 7-in-10 (68%) Americans said they have plans to save for retirement in 2023, in an effort to “stay-the-course” despite continued inflation concerns next year. Voya’s survey also revealed that a majority (81%) of Americans find having a long-term view for their investments important or extremely important, with 79% agreeing on the importance of staying the course during a volatile market.
The data surveyed 1,004 adults, with 461 employed, from October 10 to 11.
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