Retirement plans rule! Offering a 401(k) is key to employee retention
Since most (75%) employees worry about the impact of inflation on their ability to save enough for retirement, 71% are more likely to stay with their current employer if offered a retirement savings plan, new Voya research revealed.
Over the past several years, Voya has gathered consumer insights detailing how Americans feel about their personal finances, workplace benefits and retirement. Their latest survey explored the necessity of employer sponsored benefits, progression of retirement plans, and the impacts inflation has had on their financial management strategy. The Voya Financial Omnibus survey was conducted among more than 1,000 working adults aged 18+ in the U.S.
Employees were asked a variety of statements related to the impact of economic factors (outside of their control) and how it impacts their view on retirement practices. Overwhelmingly, anxiety seemed to be a primary feeling–
- 75% worry about the impact of inflation on their ability to save enough for retirement
- 43% don’t think they’ll ever be able to save enough for their retirement
- 71% are more likely to stay with their current employer if offered a retirement savings plan
Unsurprisingly, the Voya Consumer Omnibus Research: Retirement Report revealed that retirement remains “top of mind” for employees across the nation. Having a guaranteed source of income to avoid outliving their retirement savings has taken precedence for many.
“While we’ve seen inflation ease over the last few months, it’s still clear there are concerns from individuals on how they view their personal finances and the lasting impact of inflation on their long term savings goals, particularly when it comes to being able to save enough for their retirement,” said Kerry Sette, VP, Head of Consumer Insights and Research, Voya Financial.
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“Broader workplace benefits and savings that support short-and long-term needs are becoming more and more critical for employers when considering their overall benefits package – inclusive of retirement, emergency savings, student loan debt support and even providing retirement income solutions,” Sette mentioned.
“The majority of employed Americans are more likely to stay with their current employer if offered a variety of workplace benefits and savings solutions.”
Employed Americans are more likely be satisfied with their current employer if offered-
- Competitive salary / compensation package (75%)
- Flexible work hours (70%)
- Ways to improve their overall financial wellness (61%),
- Physical health benefits / programs (61%)
- Tools and resources to help them reach their retirement goals (51%)
As always, employers remain a critical resource for support. Offering sought-after benefits can strengthen the bond between employer and employee and can greatly impact the working environment, especially if many employees are experiencing financial stress. This can be the key to keeping employees calm during a rocky economic time.