The Goal Line: The relationship between savings goals and retirement confidence
The Goal Line: The Relationship Between Savings Goals and Retirement Confidence
Retirement represents the biggest expense most people will ever face. So it’s no surprise that employees are highly focused on retirement-related goals.
Seven of 10 workplace plan participants said saving for retirement was their number one financial goal, and nearly half said preparing for retirement was very important to them, in a study Empower Retirement conducted of its own participants. But employees’ focus, spending patterns and needs shift as they approach retirement. Generally, the closer employees are to retiring, the less focused they are on saving and the more focused they are on generating income. Employees who are further away from retirement focus more on day-to-day saving and spending.
The survey’s findings suggest that employers can help employees make the most of their plans by addressing their distinct needs at different stages of their lives. Assessing employees’ retirement confidence can also be a good way to understand whether a particular plan design is working as intended.
- Employees identified retirement-related goals as their most important financial goals.
- While financial goals change as employees approach retirement, most respondents are confident they are on track for enough income once they retire.
- Employees who are more confident in their ability to have enough income in retirement income are on track to do just that.