Americans are struggling to feel confident in their financial futures. Employers who want to help are often confronted with several employee concerns including consumer and medical debt, rising costs, competing financial priorities and uncertainty around retirement planning.
In a recent survey, Lincoln Financial asked workers about their greatest concerns and what would help, and the answer is clear—access to a retirement consultant who can help employees understand their options and feel more confident in making decisions for their financial futures.
Workers Feel Unprepared for Retirement
Retirement confidence is low, with less than 3 in 10 of all workers surveyed reporting that they feel highly confident about their retirement readiness. In fact, 52% of surveyed workers don’t have a clear idea of the amount of money they will need for a comfortable retirement and 45% of workers are afraid they will never be able to retire.
We dug deeper into the “why” behind these sentiments:
- Even though savings rates are up since 2023, 61% of workers surveyed still believe they are contributing less than what is needed to be on track, with a majority (53%) believing it would be difficult for them to save more than they currently do.
- The rising cost of living is the biggest barrier to saving more, according to 55% of workers surveyed. Other key barriers include unexpected costs in 2024 for 31% of workers and credit card debt for 26%.
- Accounting for types of debt and other savings goals, 78% of workers surveyed have at least three competing financial priorities, and 4 in 10 had major/moderate medical expenses last year.
Workers Want Help
Americans are increasingly interested in assistance when making financial decisions, with 82% of surveyed workers expressing interest in working with a retirement consultant or reporting that they already do. Workers said they are most interested in the following types of help from a retirement consultant:
- Determining how much is needed to save
- Choosing investments that align with their goals
- Guidance on working toward other priorities
The Impact of a Retirement Consultant
Employers stand to benefit significantly from helping their employees navigate retirement planning and benefit decisions. Retirement benefits that are done well foster loyalty among workers and aid retention, with 89% of surveyed workers who report that their employer does retirement benefits well saying they are more loyal as a result.
Supporting employees with financial decisions often requires more resources than an internal benefits team can offer. Selecting a recordkeeper who can help take the pressure off employers while meeting employees’ needs for education, interaction and personal guidance can make all the difference. Employees working with a retirement consultant feel dramatically more confident about their financial decisions, with 80% of those surveyed feeling highly confident after meeting with an advisor as compared to 50% among those who don’t meet with an advisor.
The impact on outcomes is clear. Employees who have worked with a retirement consultant:
- Have a 5% higher median deferral rate,
- Are more than twice as likely to be confident across three key retirement readiness measures,
- And feel completely/mostly financially secure (73%).
Whether it’s a one-on-one conversation with a retirement consultant or a benefits professional during open enrollment, having a trained expert to talk to makes a difference.
Making it Easier, One Meeting at a Time
Retirement planning doesn’t have to be complicated. It’s as easy as talking to a professional who knows the ropes. Whether they’re helping employees set a savings goal, understand their options, or just feel more confident about the future, retirement consultants are making a real impact. And when employees feel good about their finances, they’re not just saving more — they’re staying longer, engaging more and feeling more financially secure.
SEE ALSO:
• Employers Must Offer Benefits Beyond Retirement Plan Access
• Managing Market Value Adjustments with Lincoln Financial’s Bill McLaren