Workers Experience High Levels Of Financial Stress
August 13, 2014 by Proquest LLC
A new survey conducted by New York Life Retirement Plan Services finds that the majority of 1,500 retirement plan participants polled have felt moderate to severe financial stress over the last six months.
New York Life noted that in addition, women feel less prepared overall than their male counterparts for retirement and report higher amounts of stress as a result.
According to a release from the firm, New York Life’s 2014 Financial Stress and Retirement Readiness Report finds that 73 percent of those surveyed reported feeling extreme or moderate financial stress over the last six months.
In addition, 60 percent of survey respondents said they were behind or far behind schedule in saving for retirement. Women reported both higher levels of extreme stress and higher amounts of unpreparedness than men.
Also, more than half of respondents said they have done a poor job of investing and saving for their children’s education, which are additional stressors.
Some further highlights of the survey include:
o 60 percent of those surveyed worry moderately or a great deal that they will experience financial difficulties
o Saving for a child’s education is the number one source of worry among parents surveyed, closely followed by retirement and emergency savings
o 50 percent of survey respondents had $100,000 or less saved for retirement
o On average, participants want to retire by age 62, but believe they won’t be able to until 68
o 90 percent of those surveyed have no written financial plan for retirement
“As retirement plan providers, we must recognize that saving for retirement is only one of many financial stressors that affect Americans today, so we need to help plan participants manage a lot more than their 401(k) plan,” said Patrick Murphy, CEO of New York Life Retirement Plan Services. “Ultimately, helping employees reduce financial stress will create happier and more productive workforces for our clients.”
The Financial Stress and Retirement Readiness Survey was conducted by Greenwald & Associates on behalf of New York Life from April through May 2014.
New York Life Retirement Plan Services offers bundled retirement plan solutions and defined contribution investment only products throughout the United States.
New York Life Investments, a subsidiary of New York Life Insurance Company, is an investment management firm.
Report information:
http://cdn.rps.newyorklife.com/005F9D/docs/ 2850financialstresssurveyresultsbrochure.pdf.
((Comments on this story may be sent to mailto:newsdesk@closeupmedia.com ))
