Even Millennials are Stressed about Retirement
Saving enough for a comfortable retirement is the top source of financial stress among people in all age groups, according to a recent survey from Schwab Retirement Plan Services. 40% of the respondents said building adequate savings for retirement was the largest source of financial stress, followed by job security (24%), paying off credit cards (21%) or keeping up with monthly expenses (20%).
Even though Millennials have years left to save, 39% of the respondents in this age group said that retirement is a source of financial stress, followed by monthly expenses (29%), credit card debt (26%) and student loans (24%).
Nearly half (49%) of all respondents said they feel it is impossible to save enough in their 401(k)s to retire comfortably. However, only 43% even know how much they will need, which demonstrates a lower awareness than other important targets, such as ideal credit score (91%), weight (90%) or blood pressure (77%).
“With so many competing obligations and priorities, it’s natural for people to worry about whether they’re saving enough for retirement,” said Steve Anderson, president, Schwab Retirement Plan Services, Inc. “Roughly nine out of ten respondents told us they are relying mostly on themselves to finance retirement. It’s encouraging to see people of all ages taking responsibility for their own future and making this a top priority.”
Schwab’s research, based on the surveys of 1,000 401(k) plan participants, also discovered most people believe a 401(k) is a “must-have” workplace benefit, and many respondents believe they would benefit from saving, investment and financial guidance. In fact, only about half (51%) feel “totally on top of their 401(k),” and 35% are stressed about choosing the best investments.
Many would welcome help, and the respondents were especially interested in:
- Calculating exactly how much they need to retire (46%)
- Determining the age at which they can retire (43%)
- Estimating their monthly expenses (39%)
- Anticipating tax expenses (38%)
Because they have so many questions, most respondents (85%) said they would welcome a financial wellness program offered by their employer.