Retirement readiness is especially daunting for employees who are in the middle to late stages of their career. But you can help them put enough money away and manage those funds once they leave the workforce by offering the right mix of financial wellness and retirement plan solutions.
Where do employees really stand on retirement readiness?
In a recent survey of mid-to-late-career workers, ADP found that housing expenses, non-essential spending and credit card debt were the most common barriers to retirement saving. And those who could afford to save weren’t very proactive. Less than 25% of survey respondents said they revisit their retirement goals every year or even evaluate their investment choices.
How employers can help with retirement readiness
You can encourage retirement savings and make it a rewarding experience for your employees by:
- Improving communications about your retirement plan
- Making plan enrollment and annual increases in deferral rates automatic
- Providing financial wellness programs that teach spending management
For more information on ADP’s survey results, download our Retirement Readiness Reality Check.