Employee Benefits News
With the cost of living rising, many are beginning to rethink their finances and more specifically, their retirement plans. In fact, according to a survey by Bankrate, 74% of Americans say inflation has negatively impacted their financial situation. Moreover, 25% are planning to delay their retirement and 21% have reduced their retirement savings. Inflation doesn't change the amount of money in a retirement account, but it does determine how far that money will go. For the employees that are undereducated about retirement savings and long-term savings in general, their future may be shocking. While 56% of employers offer a retirement plan, 60% of employees don't understand how a 401(k) works and only 37% of people know how to invest in one, according to ValuePenguin. Far too often employers offer a retirement plan, setting it and forgetting it. Further financial education is a necessity for employees to truly take advantage of these offerings. So, how will employers help their people secure a safe financial future?