Possibly attuned to browsing social media, only 44% of workers plan to review their retirement contributions during open enrollment season, finds a new survey by Corebridge Financial and Morning Consult.
The research, which fielded responses from 2,312 working adults, reports that while 87% of workers believe in revisiting their retirement savings plan while selecting workplace benefits, only 34% will review their employer’s contribution and just 31% plan to evaluate whether they’re on track to reach their retirement targets.
“The benefits available through the workplace can play a major role in retirement planning — from helping you accumulate and protect retirement savings to ensuring your loved ones are taken care of later in life,” said Terri Fiedler, president of Retirement Services at Corebridge Financial, in a statement. “Your employer’s open enrollment period is an opportune time to review your retirement plan holistically, identify gaps and needs, ensure you’re maximizing your employer’s contribution matching programs and take actions that will help achieve the retirement you envision.”
Many who do not intend to review or make changes to their retirement plan during open enrollment simply say it’s because they haven’t thought about it (27%). Corebridge says the finding exemplifies why employers and financial professionals should consistently educate and engage employees and clients on their retirement benefits.
As only 41% of respondents say that their retirement outlook has improved since this time last year, Corebridge notes a clear opportunity for workers to take action with their retirement savings during open enrollment, and one for retirement plan advisors to ensure their clients are understanding. These include:
- Increasing retirement plan contribution, even by a small amount —less than half (45%) of those surveyed said they intend to increase their retirement plan contribution by 1% or more.
- Enrolling in an employer-sponsored retirement plan, if eligible — 32% of respondents said they will be enrolling in their company’s defined contribution (DC) plan, with 35% already enrolled.
- Meeting with a financial professional —nearly eight out of 10 (78%) believe it’s a good idea to meet with a financial professional when selecting workplace benefits; a sentiment that increases among younger generations.
This is especially true for women employees, notes Corebridge, as women were significantly less likely to say their retirement outlook has improved within the past year (33%).
Alternatively, Millennial workers were the most likely to say their outlook has improved, found Corebridge, with 51% adding that they “feel good about retirement.”
SEE ALSO:
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- Workers With Employer-Sponsored Retirement Plans Save $624K More
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.