Employees may disagree on the types of financial advice they need -- but they want it

Whether it’s pre-, post- or during COVID, American employees have expectations about the financial benefits they are looking for from employers. Logica Research’s survey, The Future of Money Study, which interviewed 1,000 adults, shows that Americans are very deliberate and have expectations about their financial futures, and how employers and financial institutions can help.

Speaking of the future, the study shows the overall percentage of Americans who are likely to switch employers in the next year is 52%. The highest levels are at the Gen Z and millennial levels, which say they are 61% and 67% likely to switch jobs, respectively. Forty-four percent of Gen X says they are likely and at the lowest level are the boomers with 16%.

But whether it’s a new employer or one they’ve stayed with, 77% of those surveyed feel it is important that employers offer programs to manage finances. And the expectations vary depending on the demographic. Not too surprisingly, for example, Gen Z wants money management support and to know more about retirement. millennials are focused on mortgages and retirement, while Gen X is also focused on retirement, and finally boomers needing the least amount of help with financial advice.

Specifically, “knowing when I can retire” is big with millennials and Gen X with 84% and 76% respectively wanting that kind of help. Eighty-two percent of Gen Z want to know “how much to save to meet my goals,” “knowing how to build my credit score,” and “knowing how to manage debt.” millennials are more interested in their 401(k) plans as are Gen X and boomers.

It seems that since the pandemic started, fewer people (23%) are planning to put off retirement and half (52%) of working Americans are planning to retire at the same time as before the pandemic. Unfortunately, Americans are still tense about saving enough for their retirement. Fifty-one percent said they will never save enough to have a comfortable retirement and 52% say they will work and never retire. Also, 46% say they are saving as much as they can for retirement because they will not be able to generate enough income during retirement.

Investing changes from generation to generation and the way in which investment is made also differs, according to the study. For example, 20% of Gen Z, 30% of millennials, 16% of Gen X and seven percent of boomers are putting money into the stock market more than before the pandemic. Also, millennials are talking to financial planners with 21%, Gen Z is 14%, Gen X is 12% and boomers are at six percent. The study says that people feel more confident about financial decisions and less stressed about their financial situation if they have a financial advisor.

Also, Americans are split on the advice they are looking for. For example, 21% want advice on how to make the most of savings, 21% want investment practices for their situation, 17% want to create a personalized investment portfolio, 12% want to calculate how much to save each year, nine percent want advice on spending and 21% said they would use these kinds of tools or help.

Even people as people get close to retirement, 77% will continue income-generating activities afterwards. Fifty-nine percent have a side hustle, 48% work part-time and 31% will use short-term investing as their income.

Overall, it seems Americans want personalized help and the products and services that can help them meet those longer-term retirement goals. Employers can be a part of that by providing the right benefits to meet those needs and the information to help employees manage their financial lives.