Employee confidence in their personal financial situation is at its highest level since 2018; however, they’re seeking help in making money management decisions and showing a desire for guidance as pandemic fatigue evolves into decision-making fatigue.
“Financial stress continues to be prevalent at work as well, with 66% saying they worry about personal finances while on the clock …”
John Hancock Retirement’s Stress, Finances, and Well-Being Report
Respondents to a new survey from John Hancock said employer-sponsored retirement plans are a critical benefit, including 72% who said it’s very critical. What’s more, 80% of respondents said they wouldn’t be likely to work for a company that doesn’t offer a retirement plan.
“Uncertain economic times often cause people to adopt positive financial behaviors in the short term. This fact, combined with the unique situation of COVID-19 greatly reducing the opportunities to spend money, found many retirement savers in a stronger financial situation than they were pre-pandemic,” Sue Reibel, CEO of John Hancock Retirement, said in a statement. “There’s a clear opportunity for employers to keep this momentum going by offering support to employees to help them make investment decisions with confidence, ultimately reducing their financial stress.”
Shorter commute, higher savings, less worry
The survey found reduced levels of worry compared with last year’s report, possibly correlated to pandemic-related savings—lower commuting, entertainment, leisure, and travel expenses. It’s allowed respondents to put that money to work in other areas of their financial lives.
However, the 2021 report found that three in four respondents exhibit financial stress at least at a moderate level. Financial stress continues to be prevalent at work as well, with 66% saying they worry about personal finances while on the clock, with nearly half responding that they worry about it on a weekly basis.
“The takeaway of this year’s report is the paradox that we have actually seen improved savings and confidence in personal financial situations in an ongoing pandemic,” added Lynda Abend, head of strategy and transformation with John Hancock Retirement. “However, the positive behaviors resulting in this trend have not been fully adopted by participants. This environment presents a unique opportunity to help people bridge their short-term improvements into actions that will bring them sustainable, long-term financial health.”
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.
