Employees say they feel positive about their financial situation despite living in debt, and more than half want employers’ help in planning for retirement.
They also want more education and support “to become financially secure today and in the future,” according to Aon plc.
Most people are positive about their financial situation (63 percent) and are confident about managing their money (66 percent).
Nearly 50 percent of all respondents carry credit card debt, and nearly 40 percent of early-career respondents have student loan debt—and yet they feel confident.
As they look longer term, only 25 percent of respondents expect to have a traditional retirement and go straight from full-time work to being fully retired and 60 percent of respondents worry about running out of money in retirement.
Employees report wanting guidance with their finances
Aon’s U.S. DC and Financial Wellbeing Employee Survey found more than half of respondents want their employer to provide access to financial services and products as well as help in understanding how much to save for retirement.
In addition, a vast majority are interested in some form of guaranteed income in retirement.
“When human resources leaders have a clear understanding of their employees’ financial situation and the barriers they face, then they can create ways to support employees and their financial goals,” Melissa Elbert, a partner with Aon Retirement Solutions, said in a statement. “These actions will ultimately benefit both the employee and employer through better productivity, employee morale, and more manageable retirement patterns.”
Employers are responding.
According to Aon’s 2018 Global Financial Wellbeing Study, 62 percent of respondents expect to have a global financial wellbeing strategy in place within the next three years.
Additional international employee survey findings include:
- 40 percent of all respondents find dealing with money stressful and overwhelming, while that number rises to nearly 50 percent in the U.S.
- 56 percent worry about running out of money in retirement.
- 40 percent report they are just getting by financially, yet only 12 percent of all respondents rate their current financial situation negatively.
Download the U.S. report here, and the international report here.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
