Study Shows Major Differences in How People and Their Employers View Their Retirement Readiness


The bosses who sponsor retirement investment plans think their employees are well prepared for retirement. However, many of those workers don’t feel the same way. This difference in opinion could cause a disparity on the decision-making side of employee retirement account management.

Do you have questions about building a retirement plan? Speak with a financial advisor today.

Retirement Readiness Findings From Voya’s Survey

A new survey from Voya Investment Management finds that 87% of the companies sponsoring pension plans, 401(k) plans or similar retirement offerings feel the workers participating in those plans are ready for retirement in some capacity. On the other hand, just 63% of those plan participants said they feel somewhat or very prepared for retirement.

Secondary findings from the survey help explain why people in retirement plans don’t feel quite as optimistic as the plan sponsors. Over half of plan participants cited inflation and economic factors as playing a major role in hindering their ability to save for retirement. Among those older than 50, more than a third (37%) said they expect to work longer and retire later because of the residual effects from the COVID pandemic.

As a result, plan sponsors reported a sizable hike in participants who were tapping their retirement accounts to make ends meet. In fact, 39% of them reported an increase in people taking hardship withdrawals, while 28% reported an increase in requests for loans from retirement accounts.

In addition, 30% of sponsors reported that employees had reduced the amount of money going into their accounts. Another 16% of sponsors said that employers in their plans had reduced or stopped altogether company matches in 401(k) accounts.

Other Important Details

retiree spends time with his granddaughter

“Inflation and continued market fluctuations remain a concern for many Americans, particularly for those nearing retirement,” said Brian Houston, a senior vice president at Voya. “As a result, it’s become clear there is a disconnect between employers and their employees surrounding retirement readiness.”

One aspect of those concerns was the high level of workers who said they lacked confidence when it came to making decisions about their retirement income options. When it came to specific aspects of planning their retirement finances, just one-fifth of the respondents felt very confident, while nearly one-third had no confidence in their ability to make those choices. Here’s a breakdown:

  • Converting savings to retirement income to avoid outliving funds
    • Not at all confident: 30%
    • Very confident: 20%
  • Understanding how much money is needed to retire comfortably
    • Not at all confident: 29%
    • Very confident: 19%
  • Minimizing taxes in retirement
    • Not at all confident: 32%
    • Very confident: 18%
  • Personalized strategies for drawing down my money in retirement
    • Not at all confident: 30%
    • Very confident: 17%

As a result, workers investing through workplace retirement plans said they need more help to determine if they’re ready for retirement and what they need to do to get there. For example, 87% of participants said they were very or somewhat interested in investment guidance, while 80% are interested in being able to consult a financial professional. (SmartAsset’s free matching tool can pair you with up to three vetted financial advisors who serve your area.)

Bottom Line

Voya’s study shows that companies that offer 401(k) plans, pensions and other retirement accounts think their workers are ready for retirement. However, talking to participants directly shows they lack the same level of confidence in their ability to plan their retirement finances.

Retirement Planning Tips

  • A financial advisor can help you build a plan for retirement. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
  • Fidelity recommends that you have 10 times your annual income saved for retirement by age 67. To find out if you’re on track, try SmartAsset’s retirement calculator. This free tool will estimate how much you’ll have when the time comes to retire.

Photo credit: ©iStock.com/Koldunov, ©iStock.com/Artem Peretiatko

The post Study Shows Major Differences in How People and Their Employers View Their Retirement Readiness appeared first on SmartReads by SmartAsset.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Source link

Visited 4 times, 1 visit(s) today

Related Article

2 Dividend Stocks Crushing the Market in 2026 (and Which Ones Can Keep Going)

Broader equities have been fairly resilient this year. However, there remains a very real possibility that macroeconomic problems and geopolitical tensions will eventually lead to a market crash. One way to prepare for that is to invest in dividend stocks with strong underlying businesses. Here are two options investors should consider: Johnson & Johnson (NYSE:

Meta Q3 earnings to test Wall Street’s stomach for AI spending

Meta (META) will kick off Big Tech’s earnings season when it reports its third quarter results after the bell on Wednesday. For the third quarter, Meta is expected to post earnings per share of $3.56 on revenue of $63.3 billion, according to Bloomberg analyst consensus estimates. That’s up from the $1.05 and $51.2 billion the

Prediction: Oct. 21 Will Be a Huge Day for the Stock Market

Artificial intelligence (AI) stocks have led this bull market over the past three years, pushing the S&P 500 to record highs. Investors were eager to get in on this promising technology early on, and in many cases, they’ve already greatly benefited. For example, chip designers such as Nvidia and Advanced Micro Devices, as well as

US Stock Market Today: S&P 500 Futures Climb On Strong Factory And Earnings Hopes

The Morning Bull – US Market Morning Update Tuesday, Oct, 20 2026 US stocks are set for a firmer open, with sentiment leaning risk on as investors focus on a clear upswing in American factory activity. The key driver this morning is stronger than expected industrial and capacity data. Industrial production rose 0.7% month over

President Donald Trump Claims, “We Don’t Have Inflation, and Tariffs Don’t Cause Inflation,” but a New Report Strongly Disagrees

Statistically, the stock market has delivered outsize annual returns under President Donald Trump. During his first non-consecutive term (Jan. 20, 2017-Jan. 20, 2021), the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC) soared 57%, 70%, and 142%, respectively. All three indexes have delivered an encore performance since the start of his

US housing market likely to stay bleak, Goldman Sachs warns

US housing market conditions are unlikely to change much just because the calendar turns from 2026 to 2027, Goldman Sachs warned. Elevated mortgage rates will keep homeownership out of reach for many Americans and, in turn, weigh on the US economy. “In 2027, we expect the headwind from affordability — reignited by the recent rebound

SpaceX And Tesla Prepare Side By Side Earnings Reports Amid Merger Speculation

SpaceX And Tesla Prepare Side By Side Earnings Reports Amid Merger Speculation ©@Kmeel_com from pixabay via Canva, @3DSculptor from Getty Images via Canva Key Stats for SpaceX Stock Price change for SpaceX stock in last 1 month: -3% $SPCX Stock Price as of Oct. 19: $148 52-Week High: $226 $SPCX Stock Price Target: $223 What

1 Cash-Producing Stock with Competitive Advantages and 2 Facing Challenges

1 Cash-Producing Stock with Competitive Advantages and 2 Facing Challenges A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand. Not all companies are created equal, and StockStory is here to surface the ones with real upside. That said, here is one

Homebuilders haven’t felt this bad about the market since 2012

Homebuilder confidence slumped to the lowest level since 2012 as builders contend with rising mortgage rates, high materials costs, and a challenging labor market. Confidence in the market for new single-family homes fell three points to 29 in October, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index reading. The last

Billionaire Mukesh Ambani launches India’s biggest-ever IPO | IPOs

India’s second-richest man, Mukesh Ambani, is launching what could be the country’s biggest-ever initial public offering (IPO), despite a stock market downturn. Mumbai-based Jio Platforms, a telecoms company backed by Meta Platforms and Google, is hoping to raise up to 302bn rupees (£2.4bn) and is targeting a 10.3tn rupees valuation when it floats on the

GM beats on Q3 results, tightens profit outlook, and unveils new $20 billion buyback

GM (GM) posted third quarter results before the bell that topped estimates, tightened its full-year profit outlook instead of boosting it, but issued shareholders a new $20 billion share repurchase program instead. For the quarter, GM posted Q3 revenue of $50.0 billion, up 2.9% from a year ago and above the $48.52 billion Bloomberg consensus.

Your 2027 RMD Is Locked In by Your Account Balance on December 31, 2026. If the Market Falls 15% in January You Still Owe the Larger Number, and Retirees Who Expect a Drop Take the Withdrawal in Shares Instead of Cash

Quick Read Your IRA balance on December 31 permanently locks in next year’s RMD, so even a January 15% drop still leaves you owing the larger amount. A $1 million IRA at 75 forces a $40,650 RMD even after a drop to $850,000, costing an extra $1,341 in federal taxes. Taking RMDs in shares instead

Should You Buy Netflix Stock Before Its Earnings Report After Hours Today?

Netflix (NASDAQ:NFLX) has successfully disrupted the entertainment industry, but lately it looks like it’s the one getting left behind. The stock is down 26% year-to-date, even as the broad market has risen, and Netflix lost out on its planned acquisition of Warner Bros Discovery after it was outbid by Paramount Skydance, which is now Skydance.

Amazon Stock to Top $300 in October? Prediction Market Punters Trade the Odds as Morgan Stanley Raises Near-Term Target

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Cryptocurrency bettors aren’t fully bought into Amazon.com Inc. (NASDAQ:AMZN) hitting $300 or higher in October, even as the tech behemoth braces for its third-quarter financial results. Where’s Your Money on? The betting crowd on Polygon (CRYPTO: POL)-based Polymarket

UPS Yields 6.7% After Firing Amazon. Here’s Whether the Dividend Survives 2027.

Since it is election season, voters and investors who closely monitor the intersection of financial markets and politics are being inundated with political prognostications often conveyed in “leans/likely/D/R” form. Essentially, those predictions are pundits’ way of saying that a particular result is likely to occur in a specific electoral contest. Sometimes, “probably” is as good

If I Could Only Buy 1 Quantum Computing Stock With $1,000, It Would Be This One.

In recent years, investors have closely followed quantum computing. If successful, the technology could increase computing speeds exponentially. The problem with this technology is the delicate nature of quantum bits (qubits) and high error rates. Such challenges mean that widespread commercial viability is likely several years away. Missed AI’s “Act 1”? Act 2 Could Be

Celestica Heads These 3 Canadian Undervalued Stocks

Global food prices face pressure from repeated supply shocks, and that matters for Canadian investors. Higher grocery and transport bills quietly punish weak businesses and reward those with strong cash generation and resilient balance sheets. That creates an opening to consider robust Canadian stocks that the market currently prices too cautiously. This article walks through

Is this the beginning of the end of the AI stock market boom? | Stock markets

The world is holding its breath as it waits to find out whether this year’s estimated $US1tn investment in artificial intelligence is resting on a castle made of sand. Last week, the Nasdaq 100 – an index of the 100 biggest non-financial stocks on the American tech-heavy Nasdaq exchange – dropped by 5.5%, triggering the

KOSPI Falls 3.5% at Open as 2026 Gain Shrinks From 116% to 31%

KOSPI falls 4% as South Korea’s chip-heavy stock index slides. Photo by BeInCrypto The Korea Composite Stock Price Index (KOSPI) fell 3.5% at Tuesday’s open as a chip-led AI sell-off drags on, cutting its 2026 gain to about 31% from roughly 116% at its June record close. The index now sits about 39% below that

0
Would love your thoughts, please comment.x
()
x