SAN MATEO, Calif.–(BUSINESS WIRE)–In its third year, Franklin Templeton’s Voice of the American Worker Study found that two-thirds of American workers (66%) are experiencing negative effects of the current economic environment. Almost a third (30%) say it affects their sleep, a quarter (25%) report strained relationships and almost a quarter (22%) feel distracted at work.
“With the stress of a potential recession on the horizon, it’s important for employers to check in with employees to see how they’re feeling and offer comprehensive, personalized support,” said Yaqub Ahmed, Head of US Retirement, Insurance & 529. Franklin Templeton. “Making employees a resource network in times of uncertainty can help improve well-being in all dimensions – financial, physical and mental – ultimately, improving productivity at work.”
The current economic climate is accelerating financial stress and increasing employee retention
As American workers struggle with economic uncertainty, the percentage of workers who are highly stressed by their financial health increased 7% year over year from 35% to 42%. The data indicates that increasing financial stress has transformed the Great Recession into the Great Return with two-thirds of workers (66%) reporting that the current economic environment encourages them to stay with their current employer and the vast majority (89%) likely for them. stay in their current job for the next year. Almost half of American workers (47%) know someone at their company who got their old job back after leaving in the last five years.
Despite concerns about retirement readiness and job security, 81% of workers report their primary financial goal is financial independence or having enough income or wealth to pay for living expenses without having to work or depend on others. Paying off credit card debt had the biggest year-over-year increase on the list of financial worries jumping 7%.
Employees are delaying and changing retirement plans and savings strategies
With the current economic situation, the planned retirement age has moved back three years, from age 62 to 65, and six in 10 American workers (61%) feel their retirement plans are in jeopardy. Additionally, 73% of employees report that rising living costs have changed how they envision their retirement.
Most Americans (58%) plan to work in some fashion during retirement, up from 6% two years ago.
American workers seek more personalized support from their employers
Eight in 10 American workers (82%) believe employers should increase wages and benefits offerings to address rising inflation, and 70% would like more holistic benefit options to better measure progress toward financial goals in the economic climate the current
It’s clear that personalization and personalization go a long way when it comes to the retirement savings behavior of American workers, with three-quarters (77%) saying they would be more likely to participate or contribute more to their retirement savings if there were more. personalized 401(k) investment options.
“Now more than ever, employers have an opportunity to retain top talent by offering employees comprehensive financial wellness tools and personalized solutions,” added Jacque Reardon, Chief Customer Experience for Retirement, Insurance, 529 and Wealth Management at Franklin Templeton.
The survey was conducted by The Harris Poll on behalf of Franklin Templeton and the Retirement Innovation Initiative (RII), which launched in January 2020 and brings together industry experts to help improve the future of retirement in the United States.
Methodology
This study was conducted by Harris Poll on behalf of Franklin Templeton from October 17 to October 27, 2022, among 1,000 employed adults in the United States. All respondents had some form of retirement savings. This online survey is not based on a probability sample and therefore no theoretical sampling error estimate can be calculated. The 2020 findings refer to a study of a similar nature conducted by Harris Poll on behalf of Franklin Templeton from October 16 to 28, 2020, among 1,007 working adults in the United States, and the results from 2021 refer to a similar survey was conducted among 1,005 working adults in the United States. October 28 to November 15, 2021.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in more than 155 countries. Franklin Templeton’s mission is to help clients achieve better results through expertise in investment management, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based firm has more than 75 years of investment experience and approximately $1.4 trillion in assets under management as of December 31, 2022. For more information, please visit franklintempleton. com and follow us on LinkedIn, Twitter and Facebook.
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