While workers say they feel a strong sense of long-term “retirement confidence,” many continue to feel financial anxiety in the workplace that could impact productivity.
According to Betterment at Work’s 2024 Retirement Readiness report, retirement confidence is up, but uncertainty still lies among workers. While 72% say they feel at least somewhat confident they’ll be able to support themselves in retirement, 56% believe they’ll need at least $500,000 saved to retire comfortably, yet only 38% expect to have that much in their accounts.
Among their top financial stressors, 62% have a fear of inflation increasing costs of living, 34% are worried over credit card debt, 31% note concerns over housing costs, 25% are worried over medical bills or debt, 17% are scared of job loss, and 16% worry over stock market volatility.
This anxiety has extended to the workplace, with 66% of Gen Z and 57% of Millennial workers noting that the stress has impacted their work at least most of the time. This is compared to 41% of Gen Xers and 28% of Baby Boomers, reports Betterment at Work.
“Our survey highlights a critical gap: while employees feel hopeful about their long-term finances, short-term anxieties drive poor decision-making and reduce productivity at work,” said Sarah Levy, CEO of Betterment. “Employers are positioned to close this gap with benefits and education that equip employees to manage financial challenges and foster financial confidence.”
Fifty-seven percent of respondents to the survey say they would be enticed to leave their job if a prospective employer offered better benefits than their current employer, with workers at smaller companies (61%) even more likely to move companies for greater benefits.
Betterment’s survey found that workers would rather have benefits that focus on their short- and long-term savings. Among employees, the top financial benefits include a 401(k) plan (70%), a 401(k)-matching program (66%), and employer-sponsored emergency funds (36%).
Betterment’s survey was conducted by a total of 1,000 full-time respondents ages 18 years and older.
SEE ALSO:
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Gen X Planning to Retire Later Due to Caregiving and Inflation
Following the Pandemic, Retirees Continue to Face Retirement Insecurity
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
