Workers ages 21 to 26 want to retire at age 61. However, these Generation Z members say inflation, monthly bills and unexpected expenses are among the obstacles to saving for a comfortable retirement, according to a new Schwab study.
“Younger workers are still finding their financial footing in an economic environment that is challenging everyone,” said Brian Bender, head of Schwab Workplace Financial Services, in an announcement of the findings. “They’re just starting out, so it’s no surprise that they may feel greater financial pressure, especially with such an ambitious timeline to retirement.”
And while 99 percent of Generation Z respondents noted hurdles to retirement savings, they’re not the only ones: 91 percent of Generation X members, 88 percent of Millennials and 86 percent of Baby Boomers also share their worry.
Additionally, slightly more than half (52 percent) of the 1,000 U.S. workers surveyed said their employers took steps in the past year that helped them manage their financial stress. Among Generation Z workers who credited their employers with some type of action:
- Increased pay—31 percent.
- Increased 401(k) match—25 percent.
- Handed out an additional bonus—23 percent.
- Decreased their hours for better work/life balance—17 percent.
- Added new employee benefits—15 percent.
To read the article on SHRM’s website in its entirety please click here.
Copper Leaf Financial, LLC is a fee-only, registered investment advisor, serving clients nationwide from offices in Williston and Rutland, VT. One of the firm’s main areas of focus is on providing 401k retirement plan solutions for businesses. Copper Leaf is part of a group that serves more than 1,500 retirement plans and is helping over 50,000 Americans on their journey to retirement. Our approach is based on a simple fiduciary promise: to do what’s right for you, your company and your employees, no matter what. In addition to building new plans we offer employers with existing retirement plans a complementary second opinion on the health of their plan.