America’s Public Sector Employees Are Happy at Work, But Majority Aren’t Confident They Are on Track for the Retirement They Envision
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“Those who dedicate their career to public service have demanding jobs that make a real impact on our society. And while most enjoy what they do, they also desire the freedom to retire on their own terms,” said
Turning Thoughts and Goals Into Action
Public sector workers’ top financial goal as identified by 71% of respondents is saving enough to be able to retire when they want. However, few have a specific vision to help take that next step to turn planning into action. Only 26% say they have clearly defined goals and expectations related to how much money they want to have saved before retirement. The same percentage said they have clearly defined goals and expectations related to how they will spend their time in retirement. Just 17% say they have a very good understanding of how much monthly income they’ll need in retirement. Of those who say they have at least a general understanding of how much income they’ll need, four in ten believe they will require between
This uncertainty brings challenges for many workers, with 62% citing saving for retirement as a leading financial stressor, behind inflation (83%), student loan debt (78%) and overall financial well-being (73%).
“Those in public service share a common passion for helping others, but everyone has their own unique personal goals and financial needs,” continued Fiedler. “Plan sponsors, consultants and providers have a rewarding opportunity to partner closely and deliver retirement plans, resources and experiences to help those who help us, throughout their financial journey.”
Helping Public Sector Workers Take Action in the Workplace
Workplace retirement plans can play a critical role in helping public sector workers achieve the retirement they envision. Retirement savings plans (IRA, 401(k), 403(b) or 457) tied with
Of those contributing to their workplace retirement plan, more than half (52%) contribute between 1-5% of their salary with the plurality (22%) contributing 5%.
Although 60% of public sector employees said they have access to a defined benefit (pension) plan, surprisingly, just 41% expect to fund their retirement with a pension.
“For public sector workers, it’s important to understand how your various retirement assets can work together to avoid gaps in retirement funding — whether your portfolio consists of a workplace retirement plan, pension,
The impact of advice is clear: 78% of respondents who work with a financial professional say they are more confident in their ability to retire.
The 2023
Additional insights can be found in this whitepaper .
About
View source version on businesswire.com: https://www.businesswire.com/news/home/20240725457795/en/
Işıl Müderrisoğlu (Investors): investorrelations@corebridgefinancial.com
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