Employee Survey shows that 70% have difficulty saving for retirement
“Today’s employees are stuck between a rock and a hard place,” said Catherine Collinson, CEO and President of TCRS, in a statement. “They cross disturbances in the economy, an thin employment market and the high costs of the daily life while they are expected to have a larger part of their pension income self-founded compared to earlier generations. Many struggle to adequately save.”
TCRs have been performed 25th annual pension survey Through an example of traditional W2 employees, independent employees and those who are unemployed but are looking for work.
The non -profit organization urges employers and policy makers to use the survey data as “call for action” as the American population gets older and many risks that survive their savings. This includes efforts to strengthen social security and medicine programs, extension of savings options based on the workplace and the promotion of financial literacy.
“Employees are generally better positioned to prepare for a pension. They enjoy a fixed income, and many are offered pension plans sponsored by the employer that make it easier to save and invest,” Collinson said.
“At the same time, employees are financially stretched with competing priorities and are vulnerable to job losses and other financial shocks. These factors give them the risk of shooting.”
Transamerica discovered that 52% of W2 employees themselves expect funded savings vehicles-such as 401 (K) S, 403 (B) S and individual pension accounts (IRAs)-to serve as their primary source of income in retirement. But only 28% of this group “strongly agree”, they build an amount that is large enough.
These savings levels are also reduced earlier in life. Transamerica reported that 37% of W2 employees have tapped their pension accounts, including 31% who have taken out a loan and 21% who made early recordings due to hardships.
Independent employees report comparable trends, but have unique awards.
Only 33% of this group mainly expects to bring about their retirement. Another 32% are planning to use income from company ownership or constant work, while 20% say that social security will be their primary source of income.
Six out of 10 independent employees say they save for retirement, with an estimated median savings of $ 87,000. Three quarters of this group have tax -developed pension accounts.
“Pension can be less relevant to independent employees-especially if they enjoy their work,” Collinson said. “Although it can be tempting for them to completely retire or to abandon pension, planning not to retire is not a pension strategy. The unforeseen circumstances of life can easily derail their ambitions.”
