It\u2019s the latest in a string of studies this year that have marked a one million dollar expectation for retirement. Schroders released a study<\/a> in July that highlighted $1.28 million as the \u201cmagic number\u201d to hit before retiring, while Northwestern Mutual followed closely<\/a> at $1.26 million. <\/p>\n Yet, it\u2019s unsure whether most will, or could, achieve this figure. Betterment\u2019s research shows a clear disconnect between workers\u2019 expectations of their financial future versus their current savings behaviors. While close to half expect needing upwards of a million, only 27% believe they\u2019ll hit that goal.<\/p>\n Findings also report financial struggles among employees, as more grapple with short-term costs and inflation. Five in 10 have withdrawn from their retirement accounts for emergencies, while others continue to tackle managing student debt. Nine in 10 of workers in Betterment\u2019s report say student loan payments have impacted their ability to adequately save for retirement.<\/p>\n Plan sponsors have an opportunity here to help participants build retirement security by providing meaningful benefits and financial guidance.<\/p>\n \u201cIt\u2019s striking that even as financial anxiety reaches an all-time high, Americans\u2019 belief in their long-term financial future hasn\u2019t faltered,\u201d said Sarah Levy, CEO of Betterment. \u201cThat optimism is encouraging, but employers play a critical role in turning it into real progress. Companies that invest in their employees\u2019 financial wellbeing help transform confidence into concrete outcomes and create lasting value for their teams.\u201d<\/p>\n One way employers can do this is by offering a higher 401(k) employer match, which topped out as the number one financial benefit that would entice employees to leave their company (55%). This was followed by providing an employer-sponsored emergency fund (44%), a 401(k)-matching program (43%), a 401(k) or other retirement plan (33%), a flexible spending account (FSA) or health savings account (HSA) (29%), and budgeting and savings tools (24%), among other offerings.<\/p>\n Eighteen percent of employees said they would consider leaving their employer for a company that provides student loan financial assistance or repaying programs, and another 18% would move on for a 401(k) match on student loan payments.<\/p>\n Small business employers have an opening to offer valuable benefits too, thanks to legislation that has eased administration and cost for smaller companies. While 79% of all employers currently offer a 401(k) plan, a smaller number (67%) of small businesses provide one for employees.<\/p>\n This could lead workers to transition to larger companies with access to financial and retirement plan benefits. Sixty-one percent of small business employees admitted in Betterment\u2019s research that such features could entice them to move on. <\/p>\n Small business employees want to see more commitment from their employers when it comes to financial wellness, and they would be most likely to jump ship to an employer with better financial benefits,\u201d stated Edward Gottfried, senior director of Product Management at Betterment at Work. \u201cThese insights spotlight a crucial opportunity for small businesses to fortify the loyalty and focus of their teams by elevating their financial wellness packages, starting with the benefits workers want most.\u201d<\/p>\n
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