Financial Disconnect

In order to understand their retirement goals, the middle class has to fully engage in retirement planning, notes the TCRS. This includes working with a retirement plan advisor in forming an official, personalized retirement strategy and even speaking with family about finances and financial goals. According to the findings, only 24% have organized a financial strategy for retirement in the form of a written plan, and 17% frequently discuss saving, investing, and retirement planning with family and close friends.

Workers can utilize a financial advisor, along with employer-recommended workplace tools, to gain insight on their retirement goals and how to achieve those targets, said Collinson.

Studies have demonstrated the positive effects that financial tools and resources can have on employees. A 2023 Bank of America report found that retirement planning is a top benefit for workers. Seventy-four percent of respondents to that survey said investing in a workplace retirement plan would help them build their retirement nest egg, with 61% contributing enough to reach their employer match.

Now, plan sponsors and advisors can help participants understand the significance behind other financial wellness tools that could further support their finances.

“The first striking recommendation or insight that came out of the survey report is to get savvy about personal finance,” she added. “Given what’s at stake, there are so many tools and resources available, especially if you are offered a plan by your employers, to learn about financial wellness, savings, and budgeting, because it can make a huge difference. Having a really sound approach to financial planning, budgeting, goal setting, knowing when to dial up savings, can really help guide you to not only make good long-term decisions but enjoy life along the way.”