Employees focused on retirement planning more strongly than on other financial concerns in 2011, according to analysts.
Of Americans who sought help through Financial Finesse's help line, data shows that 31 percent were seeking retirement planning advice, compared to 24 percent the previous year. Throughout 2011, other topics such as debt management, investing and budgeting or saving were all pursued by less than 15 percent of callers. The number of questions related to long-term planning issues also increased from 55 percent in 2010 to 62 percent.
More than four out of five employees reported financial stress. While more than 90 percent participate in an employer-sponsored 401k or other retirement plan, only 36 percent said they were confident their investments are allocated appropriately, the researchers say. Retirement planning executive Patricia Advaney told Plan Sponsor that this year is a good time for employers to help their workers focus on retirement planning and saving.
Rising consumer confidence and stronger performances from defined contribution plans are making people more receptive to planning ahead to retirement. Many sponsors may have postponed changes to their employee benefit plan administration such as implementing auto-enrollment. Employees may be more able and willing to save for the future as the financial strains of recent years begin to ease. Now is the time to make these changes and adapt plan offerings to employee needs, Advaney indicated.
