Public workers think they have better benefits (but are still worried about retirement)
All employers should be concerned when public service employees are anxious about their financial security because their jobs are essential and these worries can impact their ability to do their job, says a new report.
A new report from MissionSquare Research Institution found that 84% of public service employees say they are anxious about the impact of economic conditions and market volatility on their financial security. The survey also found that these concerns are having an effect on retirement savings.
MissionSquare is hosting a webinar on Oct. 31 to review the findings of the survey and provide insights into overall public sector financial wellness and the state of the public workforce in general.
The report draws on data from a September survey of more than 1,000 public sector workers. The survey of state and local government workers, conducted in collaboration with Greenwald Research, found that the current state of economic conditions in the U.S. was causing anxiety over a range of economic concerns. Officials noted that such public workers are essential for government services, and financial concerns could affect recruitment and retention of workers.
“These findings highlight that public servants administering key services and programs across the country are not insulated from the broader economic environment impacting all Americans,” said Joshua Franzel, managing director of MissionSquare Research Institute. “In many cases, public employers are reassessing and expanding their benefit offerings to enable their employees to be financially secure both in the short- and long-term. These efforts also can help address recruitment and retention challenges,” Franzel said.
Concerns are higher among lower-wage workers
Not surprisingly, those who are making less report more concerns about economic impact of inflation and recession. The survey found that those saying they were “very anxious” tended to be female, have a household income of less than $100,000, be under age 60, and have less than a college degree.
The survey also found that 81% of respondents reported being worried about whether they will have enough money to live comfortably in retirement, 81% were worried about whether they would have enough money to last them throughout retirement, 72% were worried about being able to retire on time, and 70% said they were worried about having enough in emergency savings right now.
Related: Public sector employees don’t seem aware of major pension reforms over the last decade
The concerns are having an impact on saving for retirement: the survey found that high inflation rates over the past year have led 48% of respondents to say they are saving less than usual for retirement, and current housing costs have led 37% to save less than usual for retirement.
The importance of public service benefits
The report noted that for government agencies, communicating about the quality of benefits may give public sector employers an advantage in recruitment and retention. A significant number of public employees (42%) believe their benefits are better than those offered in the private sector. The survey found that 62% of respondents said their employer’s non-retirement benefits made them more inclined to stay with their current job, while 58% of public workers said their current retirement benefits made them more inclined to stay with their current job.
The report found that the top three actions workers say their employers could take to bolster retirement readiness are: higher wages/salary (86%), better retirement benefits (54%), and better health care benefits in retirement (48%).
“We all should be worried when public service employees are anxious about their financial security,” says Lynne Ford, CEO and President of MissionSquare Retirement. “We depend on these employees to deliver essential public services and worries about personal finances can impact their ability to do their job. It’s so important to ensure the public service workforce has resources, compensation, and benefits to manage their financial security. Saving for retirement is one of the biggest financial challenges facing employees, and we remain committed to helping those who serve their communities build retirement security,” Ford said.