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Workers and employers under pressure

Workers and employers under pressure: Thoughts on jobs, financial wellness, and preparing for retirement hero image

Thoughts on jobs, financial wellness, and preparing for retirement

As Americans push forward in a changing economy, both employers and workers seek to adapt. New research highlights the opportunities and struggles faced by employers striving to maintain their workforce—and workers trying to plan and save for retirement.

What you need to know:

  • Higher salaries and better retirement benefits are key drivers to employee retention.
  • Many workers are balancing debt and struggling with financial security—partly because they lack good financial habits.
  • As workers save for retirement, their top financial priorities are seeking to maintain their current standard of living and not outlive their savings.

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FINDING 1

Workforce issues continue to plague employers.

Despite 76% of workers feeling satisfied with their current jobs, many would consider leaving for a higher salary and better retirement benefits. Because of this, many employers are taking a heightened strategic approach to recruiting and retaining talent.

Employers' top strategic business priorities in the next 18-months:
This chart shows employers’ top business priorities for the next 18-months, including hiring and retaining talent as the top priority.  69% hiring & retaining talent

Hiring and retaining talent

This chart shows employers’ top business priorities for the next 18-months, including hiring and retaining talent as the top priority.  43% Employee engagement, company culture, & work flexibility.

Employee engagement, company culture, and work flexibility

This chart shows employers’ top business priorities for the next 18-months, including hiring and retaining talent as the top priority.  39% managing employee workload & employee burnout.

Managing employee workload and employee burnout

Question:

Do you know the top employee stressors that contribute to job dissatisfaction? Click here to find out.

Answer

Workers’ top stressors that contribute to job dissatisfaction:

  • Heavy workload (38%)
  • Lack of appreciation from management (33%)
  • Low pay (30%)
  • Lack of work/life balance (28%)

FINDING 2

Many workers struggle with financial security and debt, partly due to a lack of good financial habits earlier in life.

47%

of workers report they did not have help developing good financial habits in their early 20s

Most employers offer financial wellness programs and they believe this helps workers better prepare for retirement:

  • 87% of employers agree that financial wellness programs help employees better prepare for retirement.
  • 72% of employers today offer financial wellness programs to their employees.

FINDING 3

Today’s workers aren’t dreaming of lavish retirements.

Most workers simply seek to maintain their current standard of living during retirement.

Workers' top financial priorities in retirement

This chart shows workers’ top financial priorities in retirement. Topping the list is maintaining current standard of living.  70% maintain current standard of living.

maintain current standard of living

This chart shows workers’ top financial priorities in retirement. Topping the list is maintaining current standard of living.  47% not outlive retirement savings.

not outlive retirement savings

This chart shows workers’ top financial priorities in retirement. Topping the list is maintaining current standard of living.  44% have ability to splurge periodically.

have ability to splurge periodically

Workers planning for retirement worry about inflation and cost of healthcare and they’re more concerned about inflation than healthcare costs.

  • My investments not keeping up with inflation (27%)
  • Understanding and managing health care costs (25%)
  • Only 46% of workers feel knowledgeable about how to manage their savings and investments during retirement.

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.

Reach out to your Principal® representative for ways to help people better prepare for retirement.

SURVEY METHODOLOGY AND RESPONDENTS
Online survey
Consumer/Workers: 20-minute survey conducted by Principal
Plan Sponsor: 15-minute survey conducted by Principal

Field dates
Mar. 17, 2022 – Mar. 29, 2022

Respondents
998 workers
215 retirement plan sponsors

Margin of error
Consumer/Workers results: +/- 2.9% at the 95% confidence level
Plan sponsor results: +/-6.7% at the 95% confidence level

Qualifications
Consumer/Workers: age 18+, 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 current events. These survey findings should not be construed as a guarantee of future success and do not ensure a client or consumer will have the same response nor are they representative of any one client’s or consumer’s evaluation.

Important information
This subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering consulting, legal, accounting, investment or tax advice. You should consult with appropriate individuals including counsel, financial professionals or other advisors on all matters pertaining to business, legal, tax, investment or accounting obligations and requirements.

2230555-062022 | 06/2022

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This information is educational only and provided with the understanding that Principal® is not rendering consulting, legal, accounting, investment or tax advice. You should consult with appropriate individuals including counsel, financial professional or other advisors on all matters pertaining to business, legal, tax, investment or accounting obligations and requirements.

 

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