Americans want the 2016 Presidential candidates to talk more about their plans to ensure more Americans have a secure retirement, strengthen the economy and help people save more for their financial futures, according to a new nationwide poll released today by the Financial Services Roundtable (FSR) conducted by Morning Consult.
Nearly 68% of American workers say 2016 presidential candidates have not been talking enough about ensuring Americans have a secure retirement.
The poll also shows workers highly value retirement benefits in the workplace, rating them as one of the two most important benefits employers can offer, along with healthcare, rated at 94 percent and 95 percent respectively.
Retirement benefits are rated above free food in the workplace (27%), commuting benefits (43%) paid sick leave (90%), maternity/paternity leave (74%) and paid vacation days (90%).
“The candidates on both sides of the aisle have discussed policy proposals regarding Social Security and tax reform and how those issues may impact retirement savings,” said Governor Tim Pawlenty, FSR President and CEO, in an op-ed posted today. “However, candidates have not yet taken the opportunity to discuss what the current private market could do to better address the retirement savings problem and there is more that can be easily done to help people better prepare for retirement.”
When it comes to helping employees save for retirement, 63 percent of workers think employers should match between 5 percent and 10 percent of an employee’s pay.
Only five percent of workers said they would likely opt-out if they were automatically enrolled in an employer retirement plan, highlighting the significant influence that employers can wield over their employees’ opportunities to secure their financial future.
The poll surveyed more than 2,000 registered voters nationwide, 87 percent of whom said schools should teach students more about how to save and spend money wisely.
About one-third of respondents said they think they should be saving less than 10 percent for retirement, or aren’t sure how much of their paychecks should be devoted to retirement savings.
About two-thirds surveyed believe they will need less than $1 million in today’s dollars in order to retire, or aren’t sure how much they will need. Only one-third believe they will need $1 million or more to support themselves in retirement.
As they age, Americans become increasingly aware of the importance of saving. While only 56 percent of 18-29 year olds think they should save more than 10 percent for retirement, 69 percent of 45 to 64 year olds know they should save more than 10 percent, and a whopping 79 percent of those over age 65 know they should save more than 10 percent for retirement.
Experts recommend that workers should aim to save at least 10 percent of their income toward retirement. Most Americans may need much more than $1 million in retirement as lifespans – and time spent in retirement – lasts longer.
FSR’s “Save 10” initiative seeks to increase retirement savings by encouraging employers to adopt proven tactics, such as auto enrollment and other positive elements to workplace retirement plans. Save 10 recognizes companies who excel in this area across all industries. The full list of Save 10 employers and more about the initiative can be found at www.Save10.org.