Supporting Financial Futures: Employer Solutions For Retirement Planning

How workplace initiatives can alleviate financial stress and improve employee retirement outcomes

Employers play a crucial role in shaping the financial futures of their employees, especially as concerns about retirement savings grow more pronounced. Our latest Logica Future of Money Study revealed that many Americans are feeling financial strain during these uncertain economic times—reflected directly in their ability to save for retirement and invest their money. This financial anxiety spans across all generations.

Younger employees like Gen Z and Millennials worry about saving enough despite starting early, with 50% of Gen Zers and 46% of Millennials reporting that they are saving currently but feel they should be saving more. Many from the older generations share that they will be delaying retirement and/or planning to work after retirement. About 56% of Gen Xers and 55% of Boomers report that they are planning to work full or part-time after retirement age.

“Unretiring,” or going back to work or continuing to work after retirement age, is a growing trend, according to Kiplinger. According to their article, “Thinking About Unretiring? You’re Not Alone,” the trend of unretiring is at a five-year high as older Americans return to the workforce. Unretirees often find employment in full-time positions or self-employment, particularly in regions with favorable climates and tax conditions. However, returning to work can complicate issues like Medicare coverage and taxes, making careful planning essential.

Given these investment and retirement planning challenges, employers have a unique opportunity to step in and make a meaningful impact. By enhancing retirement savings programs, offering financial wellness and education initiatives, and providing personalized planning tools, employers can help their workforce better manage their finances and prepare for retirement or even the choice of unretirement. 

Employer-provided financial literacy programs could be a big help on this front. According to Guardian Life, offering financial literacy programs can enhance employee productivity, retention and company culture by reducing financial stress, improving health, and demonstrating company commitment to its workforce. Also, offering these programs can actually help attract top talent since this is a benefit that is highly valued by today’s workforce.

The Logica Future of Money Study also shows that—despite these financial concerns and restrictions— many Americans continue to maintain or increase their contributions to 401(k) plans. This is especially true for Gen Z, with 26% reporting that they are contributing more to their 401(k), compared to 17% for Gen X and Boomers. This demonstrates a strong commitment among Gen Z to secure their financial futures and how they are seeking employer support to help achieve their retirement goals on their terms.

CNBC shares in “Meet the Gen Zers maxing out their retirement savings” that Gen Z is placing a high priority on retirement benefits, shifting their focus to employers for financial security in retirement as confidence in government support wanes. For this generation, retirement benefits are a key factor when considering job offers.

As financial uncertainty and retirement concerns are increasingly top of mind, employers can help—with benefits on both sides of the table, not only helping to decrease financial stress but also enhancing loyalty. As the Logica Future of Money Study shows, this is a chance for employers to step up. 

Lilah Raynor is the CEO & Founder of Logica Research, a research firm specializing in consumer insights and financial behavior.