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PRINCIPAL® RETIREMENT SECURITY SURVEY Q3 2021
PRINCIPAL® RETIREMENT SECURITY SURVEY Q3 2021
3 min read
66% of employers say Covid-19 has impacted workers' path to retirement
American workers and retirees are under continued stress. COVID-19 has caused many to reassess their lives and employment status. They’re seeking guidance with retirement income planning and financial concepts they don't understand. And plan sponsors want to help.
4 new insights on consumers' current economic confidence and financial behaviors
INSIGHT 1
Consumers are under continued financial stress, which may be contributing to their decreased confidence in the economy.
Many consumers today feel stress when discussing finances
WORKERS
13%
RETIREES
30%
17%
day-to-day finances
retirement savings
day-to-day finances
29%
WORKERS
13%
RETIREES
retirement savings
30%
WORKERS
17%
RETIREES
Both workers and retirees are delaying financial decisions
41%
WORKERS
35%
RETIREES
36%
39%
31%
25%
home repairs
traveling
purchasing a vehicle
home repairs
41%
WORKERS
35%
RETIREES
traveling
36%
WORKERS
39%
RETIREES
purchasing a vehicle
31%
WORKERS
25%
RETIREES
Consumers are noticing increased prices in:
Workers vs. Retirees
Consumers' 12-month economic outlook
| Q2 2020 | Q3 2021 | |
| Workers | 32% | 18% |
| Retirees | 23% | 17% |
Optimism
Caution
| Q2 2020 | Q3 2021 | |
| Workers | 42% | 48% |
| Retirees | 44% | 56% |
Q3 2021 consumer confidence in the economic outlook is the lowest it has been in a year, since Q3 2020.
INSIGHT 2
COVID-19 has caused many consumers to reassess their lives and employment status—contributing to hiring and retention challenges for plan sponsors.
Nearly a quarter (23%) of workers plan a job change in the next 12-18 months
- 60% are seeking an increase in pay
- 59% feel undervalued in their current role
- 36% seek to advance in their career
Among retirement plan sponsors
struggling to find qualified candidates
concerned about the increased competition for staffing talent
feel COVID-19 has impacted employees’ focus on their retirement accounts and their current saving and investing
feel COVID-19 has impacted their employees’ path to retirement
INSIGHT 3
Retirement income planning is a focus for both workers and employers.
74%
of workers who met with a financial professional sought help with retirement income planning
74% of workers who met with a financial professional sought help with retirement income planning
40%
increased in the number of plan sponsors intending to focus on 'retirement planning education’ during the coming year.
2021
48%
2022
67%
From 48% of plan sponsors in 2021 to 67% in 2022.
2021
2022
48%
67%
From 48% of plan sponsors in 2021 to 67% in 2022.
INSIGHT 4
Consumers want advice and help with financial concepts they don't understand.
Interested in advice from a financial professional to discuss their personal situation
Feel the plan service provider (not the plan sponsor) should provide investment education on plan investments
27%
of workers are interested in an online tool that could help them personalize their investment mix.
According to plan sponsors, financial topics that workers need the most help with include:
INVESTMENT KNOWLEDGE
56%
SELECTING INVESTMENTS
48%
FINANCIAL LITERACY
47%
Who did we survey?
During September 2021 Principal® surveyed U.S. workers, retirees, and plan sponsors to gain insights about financial behaviors and saving for retirement.
1,803
1,803
workers & retirees
205
205
retirement plan sponsors
Want to learn more?
Check out these helpful resources and materials below. Still have questions? Reach out to your local Principal® representative or support team.
SURVEY METHODOLOGY AND RESPONDENTS
Online survey
Consumer: 20-minute survey conducted by Principal
Plan Sponsor: 15-minute survey conducted by Principal
Field dates
Q1: 01/29/21-02/09/21
Q2: 05/03/21-05-17/21
Q3: 08/26/21-09/07/21
Q3 respondents
1,803 consumers; 51% workers, 49% retirees
205 retirement plan sponsors
Margin of error
Consumer results: +/- 3.3% at the 95% confidence level
Plan sponsor results: +/-6.8% at the 95% confidence level/span>
Qualifications
Consumer: Age 20+; U.S. resident; Has a financial product or service with Principal
Plan sponsor: Key decision maker or day-to-day contact; U.S. resident; Has a retirement plan with services by Principal
Background
Principal conducts periodic "pulse" surveys with customers, employers, financial professionals and consultants to gain insights into timely topics.
The survey findings reported here explore plan sponsor and consumer concerns and actions surrounding saving for retirement as well as financial behaviors related to market volatility and covid-19.
Investment and Insurance products are:
- Not Insured by the FDIC or Any Federal Government Agency
- Not a Deposit or Other Obligation of, or Guaranteed by, Principal Bank or Any Bank Affiliate
- Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested
2722652-102021 | 10/2021