Regular readers of our blog know that when it comes to retirement planning, preparation is key and it’s never too early to start!
Achieving retirement peace of mind means feeling ready and on track to meet your goals; but how do you know if you’re getting enough information and that you have what you need to feel prepared?
We’ve been reading through the Indexed Annuity Leadership Council’s report on retirement readiness, America’s Workforce: The Reality of Retirement Readiness, and here are our key takeaways:
Retirement Readiness Varies by Industry
More than half of Personal Care workers are not satisfied at all with the information provided by their employer, and 45 percent of Food Preparation and Serving workers feel the same.
Eight of 11 blue- and gray-collar industries perform below the overall average for America’s workforce when comparing the retirement-readiness scores.
Food Preparation and Serving and Personal Care workers have the lowest levels of retirement readiness.
Engineering and Protective Services are performing above the norm of all workers when it comes to retirement readiness.
Company Size Plays a Role in How Prepared People Feel
More than one-third of workers from small businesses say their employer is “not helpful at all” in terms of retirement planning support and thus will frequently turn to family and insurance agents for advice.
Employees of midsized companies are most likely to look to human resources for financial planning assistance
Access to Retirement Planning Options is Changing
1 in 8 American workers are not offered any type of retirement plan from their employer. For these individuals, retirement income planning is a “do-it-yourself” endeavor.
50%+ of all of America’s workforce reports their access to retirement plans and products has flatlined or decreased in the last decade.
Construction and Extraction and Engineering industries report the highest instance of significantly improving access to retirement plans and products over the last decade.
Food Preparation and Serving workers have seen a significant decrease in access.
Changing Access has Changed Individual Action
Nearly 10 percent of workers have switched jobs for better retirement benefits.
14 percent of workers are taking on a “side hustle” with the explicit goal of saving for retirement.
More than 40 percent of pre-retirement workers have already adjusted their lifestyle choice/expenses.
What Does it All Mean?
The report concludes with three recommendations to help with your own retirement readiness:
1. Connect with a financial professional, like an insurance agent, who can provi