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Data & Research May 4, 2012
Employees Increasingly Concerned about Retirement Preparedness
A report from Financial Finesse detailing employee
communications received online and to its call center shows increased concern
about retirement preparedness.
Reported by Rebecca Moore
Adjusted for seasonal tax questions, 73% of financial questions from employees in the first quarter were focused on taking control of finances to increase success. In addition, 30% of financial questions related to retirement planning, up from 26% in the same quarter a year ago.
Only 14% of employees reported feeling confident they were on track to retire with 80% of their income (or their goal) in retirement—a slight drop from 15% in the first quarter of 2011. Only 33% of employees in the first quarter were confident their investments were allocated appropriately—down from 34% in the same quarter a year ago.
Liz Davidson, chief executive and founder of Financial Finesse, said that although employees are far from where they need to be, they are showing positive growth by realizing they are behind as they continue to emphasize proactive financial issues. She says Financial Finesse is impressed by a strengthening trend of lower-income employees reaching out for help and engaging with financial wellness programs, something that they often eschewed in the past, believing financial planning was for the wealthy and had nothing to offer employees with limited assets.
The full report can be downloaded here.