EL SEGUNDO, Calif.–One new analysis suggests there’s been a marked improvement in the job being done by at least one segment of Americans when it comes to savings for retirement.
According to Financial Finesse, which offers workplace financial wellness programs, its 2018 Financial Wellness Year in Review, which includes the results of a multi-year study focusing on 2,458 employees who regularly engaged with
their employer’s personal financial wellness program from 2013 to 2018, has seen a strong improvement in retirement savings over the five-year period.
According to Financial Finesse, in 2013, 21% of participants included in the study indicated they were prepared for retirement. By 2018, that number had risen to 57%.
Among the Findings
Among other findings in the study:
- There was a 50% increase in average retirement plan contribution rates, from 6.3% to 9.4%.
- There was a 41% increase in average contributions to a health savings account, from $934 to $1,319.
- There was a 26-point improvement in the percentage of employees who felt confident in their investment strategy, from 43% to 69%.
Greg Ward, director of the Financial Wellness Think Tank and coauthor of the report, said it is the most significant research the firm has conducted, because it studies the effect of engagement in a financial wellness program for the same group of employees over a five-year period.
“Retirement preparedness is a lifelong endeavor,” said Ward. “Even the best retirement plans can’t compensate for an employee who simply is unable to save sufficiently due to high levels of student loan debt, rising healthcare expenses, and a society that places a premium on ‘living your best life’ with experiences that are largely out of reach for most Americans.”