Nearly 7 in 10 working adults say they would perform better at work if their employer offered more financial wellness benefits, NAPFA consumer survey finds
CHICAGO, November 1, 2022 /PRNewswire/ — Nearly seven in ten Millennials and Gen Z Americans report that stress related to their personal finances has had a negative impact on their work productivity, according to a survey released today by the National Association of Personal Financial Advisors (NAPFA). In fact, 87% of working Americans said they feel stressed about their finances, and nearly a third (32%) said they spend half an hour or more per workday thinking about their finances.
The same survey reports that 74% of working adults feel their colleagues are stressed about their finances due to rising inflation, and almost four in five (79%) think employers should be more aware of the financial difficulties of their employees. Additionally, nearly seven in 10 respondents (69%) said they would perform better at work if their employer offered more financial wellness benefits, with more than four in five (81%) of the millennials and nearly three-quarters (74%) of men agree.
“Due to the severe impact of inflation and other current financial stressors, consumers are looking for support and understanding from their employers when it comes to financial wellness,” says Geoffrey Brown, CAE, CEO of NAPFA. “Consumers can more easily navigate these financial concerns and make the best use of employer financial wellness programs with the help of a paid financial planner.”
Data from the NAPFA Consumer Survey also reveals that increased financial stress is causing Americans of all generations to question their financial future. Amid inflation concerns and financial stressors, survey data also reveals that Americans are contributing less in retirement:
Nearly three in five working adults (58%) have contributed less money to their retirement due to inflation, with 69% of millennials reducing their pension contributions.
Nearly half of respondents (49%) said they weren’t sure how much money they needed to retire comfortably, with 55% of baby boomers agreeing.
More than half (54%) of Baby Boomers, 80% of Millennials and 72% of Gen Z think they need to pay off all their debt before they can focus on saving for retirement.
The survey reveals that retirement plans provided by employers are not substantial enough for employees’ financial planning goals, creating uncertainty for many Americans.
Almost half (49%) of respondents felt that they could not retire comfortably with their employer-sponsored pension plan alone.
64% said they know someone who has delayed retirement because they haven’t saved enough.
More than half (51%) of working adults believe that their employer does not provide “the right kind” of retirement planning resources to ensure employees have enough money saved.
Nearly three in five men (58%) and nearly half (46%) of women said their employer-sponsored pension plans (e.g., 401k) weren’t adequate, but didn’t feel financially savvy enough to come up with a better plan.
“Fee Only financial planners can help consumers dramatically improve their retirement planning,” says Brown. “Before you start looking for a financial planner, determine what you want to accomplish by working with an advisor, then use resources like NAPFA’s Find an Advisor tool to find an advisor who specializes in retirement planning. .”
While employee-sponsored financial plans are a great benefit for employees, financial wellness benefits that emphasize financial literacy and personalized, vetted advice from a personal financial advisor can help employees navigate their financial future.
It is becoming increasingly important for Americans to work with a professional they can trust to help them navigate their financial future. Paid financial planners are affordable, regulated and fiduciary, which means they put the interests of the client above their own. Visit NAPFA’s Find an Advisor tool to find financial advisors in your area, as well as a variety of consumer resources, including details on how to find a financial advisor.
FAQs Answered by NAPFA Advisors
Q: How can I balance inflation and retirement savings?
A: In difficult economic conditions, it is important to have good financial habits: limiting your expenses and increasing your savings can help you succeed. There’s no doubt that when the cost of daily living increases, saving for retirement becomes more difficult. If there is a need to reduce savings, assess which accounts should be prioritized. For example, forgoing your employer’s 401(k) match to save in an unmatched account such as a Roth IRA is probably unwise and doesn’t give you the best value.
Q: How can my business work with a financial planner to provide financial wellness benefits?
A: First, a company must begin by understanding the financial needs and challenges of its workforce. Once this has been determined, the company must engage a paid fiduciary planner, who provides unbiased advice in the employee’s best interest. The planner should be an educator who answers employee questions about finances to reduce financial stress. Financial well-being is an imperative part of overall well-being, just like physical and mental well-being, so choosing the right planner can be a huge benefit to any company’s workforce.
Since 1983, the National Association of Personal Financial Advisors has provided fee-paying financial advisors across the country with some of the highest possible standards of professional competence, comprehensive financial planning and fee-based compensation. With 4,500 members across the country, NAPFA is the leading trade association in United States dedicated to advancing paid financial planning. Learn more at www.napfa.org.
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