Old and young Americans want work-sponsored pension plans.
Americans don’t want to figure out how to invest money for retirement. Most just want their job to keep cutting them a check after they stop working.
Almost 20 percent of U.S. workers would prefer their job provide them a set paycheck for life over a large sum at one time to invest on their own, says a study from investment firm MetLife.
Retirement planning partner
More employees feel they’re solely responsible for funding their retirement, but many want help — from work.
More than half (54 percent) of U.S. workers say they’re primarily responsible for funding their retirement. Twenty-seven percent feel their company is responsible, and 19 percent think the government is. With that, most employees would prefer their job to partner with them in their retirement savings plan.
When asked if they want their company to be more or less involved in planning their retirement over the next five to 10 years, 61 percent said more, and only 9 percent said less.
Most Americans would like their retirement income in the form of a pension paycheck. But those are fading from existence in the current workforce, Metlife says. Someone should tell millennials.
Millennials want pension plans
Millennials joined the workforce too late to get the retirement benefit they want. The youngest, and largest generation in the workforce wants pension benefits most compared to older generations, says a study from professional service company Accenture.
It polled almost 3,000 U.S. and Canadian workers and retirees with pension plans. The survey reveals that 78 percent say the retirement benefits were critical in deciding to accept their job. Even further, 73 percent say they stayed with their job for their pension benefits. Can younger workers have the same?
Eighty-two percent of millennials say pension benefits are important when choosing to accept a job. Meanwhile, 81 percent of Gen Xers agree, and only 74 percent of baby boomers say the same.
“The pension benefit may now be nearly as important to employees as their healthcare,” says Accenture’s global pension practice leader Owen Davies. “While health benefits have been the benefit most valued by job seekers and employees in recent years, pensions appear to be closing the gap.”
A pension plan may be a sought after work benefit for millennials, but just three years ago CNN reported pension rates among millennials will be much lower than the current workforce, leaving many of the generation at risk to retire in poverty.
As if millennials didn’t already have enough money woes while planning their retirement, healthcare costs are rising with no sign of slowing down.
The costs of healthcare
A couple retiring this year needs an estimated $280,000 saved for healthcare costs alone, says a study from Fidelity. That has increased by 2 percent since last year’s estimate, and 75 percent since 2002, the first time the investment firm estimated retirement healthcare costs. It was $160,000 at the time.
“Despite this year’s estimate remaining relatively flat, covering healthcare costs remains one of the most significant, yet unpredictable, aspects of retirement planning,” says Fidelity benefits VP Shams Talib. “It’s important for individuals to educate themselves and take steps while working to ensure they are prepared to address these costs.”
Forty-six percent of retirees estimate healthcare to cost them only $100,000 in retirement. And 33 percent don’t know how much healthcare would cost them. However just last year, Fidelity estimated healthcare to cost Americans $260,000 in retirement. If it increased $20,000 in only one year, what’s going to happen when millennials reach retirement age?
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Article last modified on June 11, 2018 Published by Debt.com, LLC . Mobile users may also access the AMP Version: Americans Want Retirement Income Over Savings - AMP.