81% of Public Service Employees Worried They Won’t Have Enough Money to Last Through Retirement
WASHINGTON, D.C., Oct. 28, 2024 (GLOBE NEWSWIRE) -- A new national survey of public service employees from MissionSquare Research Institute reveals the vast majority of public employees (81%) are concerned they won’t have enough money to last throughout their retirement years. Additionally, 78% say they won’t have enough money to live comfortably in retirement, and only 9% say the benefits provided through their employer are “very sufficient” to meet their retirement needs.
These findings come despite the fact that most state and local employees have access to defined contribution accounts and defined benefit pension plans. Recent research from the Institute finds many public employees face financial challenges, with many struggling to pay their day-to-day living expenses.
Read a research infographic summarizing the survey results.
Andre Robinson, MissionSquare Retirement Chief Executive Officer and President, stated, “National Retirement Security Month is an important time to reflect on how we can strengthen the financial security of all Americans. These survey results clearly indicate that there is much work to be done in terms of shoring up financial security across the board. As a nation, we can and should do more to ensure everyone is best positioned for a secure retirement. If workers are worried about their finances, they can’t focus on their jobs. The good news is that our research points to practical solutions that can be implemented to bolster retirement readiness – from expanding auto-enrollment to increasing financial planning and education resources.”
“Our research underscores the need for more financial education and planning resources,” echoed Zhikun Liu, Ph.D., CFP®, Vice President, Head of MissionSquare Research Institute. “Public employees vary widely in their approaches to managing their retirement savings, from seeking advice from friends to performing their own calculations. The process of decumulation of retirement assets carries significant implications, and mistakes can dramatically impact whether employees spend down their nest egg prematurely.”
Additional key findings of this pulse survey are as follows:
- 73% of state and local employees are worried they don’t have sufficient emergency savings.
- Workers say higher wages (78%), improved retirement benefits such as employer matches (54%), and better retiree healthcare benefits (50%) would bolster their retirement confidence.
- Employees indicate that more financial education and planning information is needed, including guidance on how much to save for retirement (65%), what benefits are needed at different career stages (53%), and how defined contribution plans work (47%).
This survey, conducted by MissionSquare Research Institute in collaboration with Greenwald Research, reached a nationally representative sample of 1,009 state and local government workers between September 13 and October 4, 2024.
About MissionSquare Research Institute
MissionSquare Research Institute promotes excellence in state and local government and other public service organizations to attract and retain talented employees. The organization identifies leading practices and conducts research on retirement plans, health and wellness benefits, workforce demographics and skill set needs, labor force development, and topics facing the nonprofit industry and education sector. MissionSquare Research Institute brings together leaders and respected researchers. More information and access to research and publications are available here.
About MissionSquare Retirement
Since our founding in 1972, MissionSquare Retirement has been dedicated to simplifying the path to retirement security for public service employees. As a mission-based, nonstock, nonprofit financial services company, we manage and administer over $81.5 billion in assets.* Our commitment to delivering results-oriented retirement plans, education, investments, and personalized advice sets us apart. Explore how we enable public service workers to build a secure financial future. For more information, visit www.missionsq.org or follow the company on Facebook, LinkedIn, and X.
*As of September 30, 2024. Includes 457(b), 401(k), 403(b), Retirement Health Savings (RHS) plans, Employer Investment Program (EIP) plans, affiliated IRAs, and investment-only assets.
Bina Handa MissionSquare Research Institute brhanda@missionsq.org
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