While over 80% of American public sector workers say they feel fulfilled in their roles, well over half are unsure whether they’ll be able to achieve a secure retirement, finds new research from Corebridge Financial.
The study surveyed healthcare, education, government, and non-profit employees, finding that even as 42% hope to see a long retirement spanning 20 or more years, only 41% feel like they are on track for retirement, and 24% are unconvinced they’ve saved enough.
Furthermore, only 26% have clear savings targets and expectations for retirement, and just 17% understand the amount of monthly income they’ll need for later years, with four in 10 estimating needing between $3,000 to $5,000 a month.
“Those who dedicate their career to public service have demanding jobs that make a real impact on our society. And while most enjoy what they do, they also desire the freedom to retire on their own terms,” said Terri Fiedler, president of Retirement Services at Corebridge Financial.
The findings suggest that pension plans, while still generally accessible to public sector workers today, are not enough to fund a retirement like in prior generations. While 60% of public sector workers in Corebridge’s survey have access to a defined benefit (DB) plan, just 41% expect to fund their retirement solely with a pension.
This uncertainty is proving to be an expansive financial stressor for workers, finds Corebridge, with 62% listing it as a leading driver of stress, just behind inflation (83%), student loan debt (78%), and overall financial wellbeing (73%). As a result, 71% of public sector workers say their top goal is to be able to save enough to retire at any moment they choose.
Others are looking to their employers for help. Seventy-three percent of respondents likened the benefits of retirement savings plans, such as individual retirement account (IRA), 401(k), 403(b), and 457 plans, to that of Social Security benefits, and 65% described defined contribution (DC) retirement plans as a “very important” workplace benefit, ranking behind health insurance and paid time off.
Over half of respondents who are offered a workplace retirement plan are participating, with 52% contributing between 1% to 5% of their salary, and 22% contributing 5%.
Most also see the benefit of financial guidance, as 78% of respondents who work with a financial professional say they feel more confident to retire.
“Those in public service share a common passion for helping others, but everyone has their own unique personal goals and financial needs,” added Fiedler. “Plan sponsors, consultants and providers have a rewarding opportunity to partner closely and deliver retirement plans, resources and experiences to help those who help us, throughout their financial journey.”
SEE ALSO: