State and local government workers are worried about having sufficient retirement funds, according to a new report from MissionSquare Research Institute.
“Our research highlights the importance of providing targeted support to those less-tenured workers who may often face greater financial uncertainty as they plan for retirement.”
Zhikun Liu, MissionSquare Research Institute
Among full-time government employees, 81% said they’re concerned about saving enough money to last through retirement, and more than 70% have concerns about retiring on time.
Employees said they could better save for retirement if they received higher wages (78%) and better retirement benefits (54%). Nearly half (48%) said current living expenses are keeping them from saving more for retirement, while others cited debt and not knowing how much to save as obstacles.
The study found that the retirement concerns of less-tenured employees differed from those of employees with 20 or more years of service. Among the long-tenured employees, fewer (76%) said they were worried about having enough money for retirement, and only 63% said they had concerns about retiring on time.
More than three-quarters of employees with less than 10 years of service (77%) said they’re worried about their emergency savings, while only 64% of employees with more than 20 years of service said the same.
“Several factors may influence retirement readiness for workers, including one’s income and access to financial education and employer-sponsored retirement plans,” said Zhikun Liu, vice president and head of the MissionSquare Research Institute. “While all employees can benefit from robust retirement planning resources, our research highlights the importance of providing targeted support to those less-tenured workers who may often face greater financial uncertainty as they plan for retirement.”
Across all employee groups, 65% of respondents said they’re interested in financial education from their employers. But specific topics of interest varied according to career stage.
Employees with fewer years of service—69% of those with less than 10 years of service and 66% of those with less than 20 years of service—said they were interested in learning more about how much they should save for retirement. Less-tenured employees were also more likely to be interested in receiving basic information on how their retirement plan works and their vesting schedule.
More tenured employees (64% of those with 20 or more years of service) said they were more interested in understanding the tax implications of their retirement plans, compared to only 54% of those with less than 10 years of service and 57% of those with less than 20 years of service.
“A financially prepared workforce is a more engaged and resilient workforce,” Liu said. “By addressing the needs of the workers detailed in our research, employers and policymakers can help craft effective retirement strategies that support employees across all stages of their careers.”
SEE ALSO:
• Public Sector Employees Admit Needing Retirement Guidance
• Employers View Retirement Planning as Collaborative Effort with Employees
• Public Employees More Likely to Opt for Default Investments in DC Plans
Corey Dahl is assistant editor with PropertyCasualty360.com. Previously, Corey was the editor of Colorado Builder magazine andS enior Manager of Content Strategy & Development at Charles Schwab.