Perceived Helpfulness of Financial Well-being Programs: Results From the 2017 and 2018 Retirement Confidence Surveys

Perceived Helpfulness of Financial Well-being Programs: Results From the 2017 and 2018 Retirement Confidence Surveys

Volume 457

Pages 19

Executive Summary

Employers are increasingly focused on the financial stress that their workers are facing, and are seeking ways to help reduce it. The goals are myriad: increasing worker productivity, reducing workplace turnover, attracting talent, improving the use of defined contribution (DC) plans, and more. In other words, increasing workers’ financial well-being can be beneficial not only to workers, but to the employer as well.

In order to document workers’ interest in various well-being programs, the Employee Benefit Research Institute (EBRI) along with Greenwald & Associates added questions to the annual Retirement Confidence Survey (RCS) about these programs in 2017 and 2018. Questions were asked about whether workers felt stressed about their finances and preparation for retirement. Subsequent questions were then asked about if the workers felt that various workplace financial well-being programs would be beneficial and help them be more productive at work.

Stress about retirement: Workers were asked if they felt stressed about preparing for retirement in two different manners between the 2017 and 2018 surveys. Despite the differences, it was clear that a significant percentage of workers were stressed in both years. In particular, workers with lower incomes or in poor health were more likely to feel stressed about preparing for retirement.

Worrying about finances at work: Thirty percent of workers overall reported worrying about finances at work. Furthermore, of those worrying about finances, 70 percent worried at least somewhat often. Many important factors were correlated with this worrying. For example, nearly three quarters (71 percent) of those who said debt was a major problem worried about finances at work, compared with just 9 percent of those who said debt was not a problem. More than half (55 percent) of those who were not confident about living comfortably in retirement were worried about finances at work vs. just 7 percent of those who were very confident.

Helpfulness of workplace financial well-being programs: An overwhelming majority of workers thought the following programs would be either very or somewhat helpful: help calculating how much to save for a secure retirement (75 percent), help calculating how much to anticipate spending each month in retirement (72 percent), planning for health care expenses in retirement (72 percent), and help with comprehensive financial planning (68 percent). Other financial well-being programs scored lower when it came to perceived helpfulness. Fewer than half of workers thought debt counseling or budgeting help would be helpful. Notably, fewer than four in ten (39 percent) workers thought student loan debt assistance programs would be helpful in preparing for retirement. However, younger workers were much more likely to perceive these programs as being helpful than older workers. 

Impact on worker productivity: A majority of workers thought retirement planning and financial planning programs would increase their productivity at work. The other programs that had higher likelihoods for increased workplace productivity include financial planning (48 percent) and health care planning (47 percent) programs. Interestingly, debt counseling (29 percent) was thought to be the least likely to be helpful for productivity. Again, younger workers were more likely to think that some of these programs were helpful than older workers. In particular, younger (ages 25-34) workers were more likely to think that debt counseling, expense management, prioritizing savings, and budgeting programs were helpful than older (ages 55 or older) workers.

Improvement of mental health: Patterns were similar to those on the impact on worker productivity when it came to the perceived impact of financial well-being programs on workers’ mental health. Just over half (51 percent) of workers said that financial planning and retirement planning programs would be somewhat or very helpful in improving their mental health. Corresponding to the results on worker productivity and debt levels, workers for whom debt was a major problem were more likely to report that the same programs would also be helpful in improving their mental health

EBRI Issue Brief

Aug 20, 2018

Craig Copeland

Retirement Financial Wellbeing

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Any views expressed in this report are those of Progra Prm ogr s on ams Deb int H Welpi ill Be ng Help to ful in Prep Improve a th ring e W for R orke etrirem ’s Ment enta , bl yH D ealt ebt h Problem Results F Wor rom kert sh Feel e 20 ing 17 St an ressd ed 2Abou 018 Re t Prepa tire rin m g efor nt Con Retirem fide enn t ce being Progr Prog ams ram on D s inebt Help in H inelpi g to ng Incr Prepa easre ing Prfo od r R uct etir iv eme ity a nt t Work Stress Programs W About ork in er H Prod elpi Preparing uct ngivit Pry epa , byfor rD e eb fo Retirement tr St Re attir usement t phis rod m ucatnne ivityr , inc wor lude ker s fin aa pnc peia al re pd la tnni o ha ng ve (48 an e pev re ce n st nt)r o ange nd he r aagltrh eecm areent p la ab nni oung t fe(e 47 lin p ge st rcre ent ss)e d p ra og bout ram p s. I rep na te rirng estfor ingl y, debt at Work, by Various Factors, 2017 the author and should not be aImpr scribed ov to in the g offic Their ers, t M renta ustees, or ot l Healt herh, sponso by G rs of end EBer RI, Employee Benefit Research Su Work Fir eg rv s ure w e ho y 11s , indic P erc ae te nt da tg ha e tof the Wy or w ke errs e W expe ho rSa ienc y Va ing rious a m a Ejd or u cp artob ion le am l o w r it Fih d nan ec bia t l wW ereell -m be uc ing h m Pr oog rer lik am es on ly to D fin eb dt tW haill t Be r ce ouns tirem elin eng t. (N 29 ine pte ere cn p ente ) rw ce ant s t st houg rong ht ly t o agbre e etd he w le ith th ast li ek st ely a tteo mb ee nt he alpful for nd 40 p ep rr cod ent uc som tivite yw . A ha ga t in ag , ry eoung ed, so mor er wore k etr ha s w n h era elf Institute-Education and Research Fund (EBRI-ERF), or their staffs. Neither EBRI nor EBRI-ERF lobbies or takes positions How helpful, if at all, do you think the following programs would be for improving your 60% 70% 70% How helpful, if at all, do you think the following programs would be for increasing your September 2010 • No. 346 August 20, 2018 • No. 457 57% fin H RC e an lpf S c ia Me uln l we tllho e -b s Hes e do ing lpful in ology f prWo ogP ra rr - e m k p 2017 s w a plac ring ould for e he Fin Re lp tiw ranc eit m h p eial nt rod , b uc Wel y D tiv eib tly t- M be P taha r jo ob rn th ing Pr leo m b ose lem ................................ Pr W w oit igr thou h D am eb t d t e sb t N po r ob Pro le b................................ m lem s W (Fi itg hur Deb e 15 t ). The la ........ rgest 13 How helpful, if at all, do you think the following workplace educational or financial well-being Cu m rren enttal ly, h healt ow h st … re? s s ed a re you mentally or To what extent do you agree or disagree m (59 or e p elik rce ely nt t )o of thin the k w tha ortk e som rs a et of No leats he t som se pe rog whra atm as w greeerd e. he Only lpful th 11 pae n o rcelde nt rs 40% tw ro or ngly kers. I disn p agra eretd ic ul wa itrh th , young e sta etre m (ae gnt es 25 . -34) on specific polic How yp p r od h rop elp uosa ct fu iv l, lits. if y a E a tB ta RI w ll, or d inv k o …? iy te ou s c th oin mk m te hnt e fon ollow thiin s r g e w sea ork rp ch. la ce educational or financial well-being By Craig Copeland, Ph.D., Employee Benefit Research Institute Very or Somewhat Stressed Not Too oSi r No ngt le a F t All S emtre ale ssed Single MM aaj leor 54% 63% 54% emotionally p, ro if g a rt a a m lls , a wb oou uld t p bre e p in ahelp ring ing for you bettw eirt h p rte hp ea fol rel ow or s in a g s vet a fo tr e r m et e irn etm ? e Pnt re? paring for 53% difference in thinking that a program would be helpful on the basis of debt is debt counseling: 50 percent of workers pr 61% ograms would be in helping you better prepare or save for retirement? The The 20 2018 17 RC RetS ire am ske ent d if c Conf ertide ain w nceor Sur kpla vecy e (e RdC uc S)a, tion thea 27 l otrh fia na nnu nciaal, l w ga euge ll-be ding thep v rog iew ra s a ms nd w ould attitude help s of wor wk or ek rs b inge -a ttg ee r and workers were more likely to think that debt counseling, expense management, prioritizing savings, and budgeting Problem retirement? retirement makes you feel stressed. Yes Figure 12, Percentage of Workers Who Say Various Educ 27% ational or Financial Well-being P 50% rograms on Debt Will Be 60% 58% 60% W who orksa erid s w dit eh house bt is a m hold ajor in pr co ob m le em s le thoug ss thht an $75 such a ,000 pr og werraem m w or ould e lik e bly e he to lpful com agree tha pta r perd e pw ait ring h jus for t 17 re tp ire erm ce en nt t for ma k th eose s the m With Debt r pe rteir pe ad re A or m esra icva ens for re rg ea tirrd eing ment re. tir Ae m me ajnor t, itty he of ir w pror ep ka er ra s ttion hos for ught rte he tir follow ementing , the pr irog con ram fide s w nc ould e w it bh r e eeit ghe arr d vte o ry v aor rio us programs wer 50% e helpful than older (ages 55 or older) workers. Copyright Information: This report is copy Ve right ry He ed lpf b uy l the So E me mp wloy hat eH ee B lpf eu ne l fit No Ret sea Helpf rcu h I l nstitute (EBRI). It may be 71% Very Helpful Somewhat Helpful Not Helpful Helpful in Preparing for Retirement, by Having Ever Saved for Retirement ........................................... 13 Very Stressed Somewhat Stressed Strongly Agree Somewhat Agree 53% fe who el st sa re id ssd ee db ( t 64 is not per c ae p nr t ob atle le m a.st Fu so rtm he er w m Ve ha orrt ye H a , g el w rp e or fe uk d le v rs w s. 52 Soit mh low ew pe hracte e H r nt el inc pof fuom lthose es (l Now te H ss itel h p tha in fuc ln $ om35 es of ,000 $75 ) w,000 ere m oo r rm e or likee)ly ( Fi to gur sae y No 41% No som aspeecw ts of hat r he etlpful: h irement e, lp and calc re ula latte ing d is how sue s. The much to s survaevye w for as ac ond secu uc re te rd e tfr iro em m eJa ntn ( . 75 6, 201 perc7 t ent o ), Ja he n.lp 13 c, alc 20 ula 17 t ting hro how ugh m onlin uch e Introduction used without permission, but citation of the source is required. 51% 51% Perceived Helpfulness of Financial Well-being Programs: Not Too Stre 43% ssed No Ve t at ry H All S elp tre fuslsed Somewhat Helpful Not Helpful Somewhat Disagree63% Strongly Disagree Problem t 2 Im ha ). t p Fu d ro e rtv b he em t c rm ouns en or 50% t o ee , lin 65 f g m p(en e 41 rctal h e pnt er c of ea ent tlt hose v hs. 25 p : Pw atho tee rn ha rcs w evnt ee )not r e a nd si cm ab lila c udg ul ra te to e ting d those how (53 on m puc etrhe c h t e nt im he v p ys. 4 a w ctill 1 p on nee w erd or c etk nt o e) rsa p w vre e od r e for u he c trilpful th e vit tir ye w mhe eann w n it t eit or cha k em e r res 50% t int o e arnt vie icw ipa s w te itspe h 1, nding 671 ind eaiv ch mont iduals ( h in 1,08r2 w etire or m ke en rs a t (72 nd p 58 er9 c ernt et) ir, ep ela s)nni agng es for 25 he or a ol ltd h ec r ain t re he expe Unit nse ed s in r Stae te tir s. em ent (72 Financial planning 14% 37% 46% Employers are increasingly focused on the financial stress that their workers are facing, and are seeking ways to help Figure 13, Pe Rr ectire eiv me edn H t pla elpful nninne g ss of 16% Various Educationa 36% l or Financial Well-being Prog 45% rams in Helping to Increase Yes 24% With Debt Results From the 2017 and 2018 Retirement Confidence 40% som R w to ec itth hig he e ow m p ha m e he rtc en re o inc iv rd st e ed o d rm ong Ci im es ($ p tatio ly a ca t75 gof rn ,0 e:e fi 0 d C na 0 o rta nc ha ig r itm aC l w p or op re e e e p )ll la a -(rb nd, Fi ing eg ing ur “for P ee p 16 rrrc og ee )tiv . ir ra e em m d s e Hnt on elpfulne m wa or ke ks t e ss rs’ he of m m Fi e na nt fea e nl he l cst iarl We a elss th. elld - J b us ves. ing t ov 48P e p r rog e hra c rlf (5 a em nts: Re 1 p who esu rha ce ltv nt s F e) rof om the 43% percent), and help with comprehensive financial planning (68 percent) (Figure 7). reduce it. The goals are myriad: increasing worker productivity, reducing workplace turnover, attracting talent, Productivity at Work ........................................................................................................................ 14 40% 16% 2017 and 2018 Retirement Confidence Surveys” EBRI Issue Brie 15% f, no. 457 (Employee Benefit Research Institute, August For the first time in 201 No 7t, a tph ro e 15% b lRC emS utilized GfK’s national, probability-based, online KnowledgePanel® in lieu of the c waor lck ul ea rts s eda how id th a m t uc finh mo ancia ne l p yl atnni heyng will and nereedt. ir 9% ement planning programs would be somewhat or v 39% ery helpful in improving Surveys Retirement planning 7% 34% 40% Financial planning 14% 37% 46% 14% 34% 49% 40% improving the use of defined contribution (DC) plans, and more 33% . In other wor 11% ds, increasing workers’ financial well-being 36% Patterns were similar when it came to the perceived impact of financial well-being programs on workers’ mental health. 20, 2018). E tra ac dh o ition f th al r ese ando four m p dr igit og rd aia ml l s a w ndline ere m or tele e p lik hone ely t o and be cceonsi ll phone dered su ve pr pyle or m e som nt us ew ed ha in p 31% t herlpful if ior wa19% vte he s. G wfK or’k s eK r now had le sd av ge ed P a for ne l® their mental health. Corresponding to the results on worker productivity and debt levels, workers for whom debt was a Figure 14, Percentage of Workers Who Think Various Educational or Financial Well-being Programs Are at Least 22% Major problem can be beneficial not onl 25% y to worker32% s, but to the employer as well. 71% 25% 2 By Craig Co 30%peland, Ph.D., Employee Benefit Research Institute Jus Othe t ov r deerm hog alf ( ra 24% 5 p1 p hic e fa rcce to nt rs ) of ass w oc or ia kteerd s s wait id h mo thatr e fin lik ae nc lyi aal p grla ee nni ing ng 27% tha and t one ret ir fe ee m lse st ntr e pss lann ed ing about prog pr re am pasr ing would for b re et irement 26% Health care planning 27% r is e ttir he em laern gte s or t p ha rob H de a a ab lth rili e c tty ia r-e re bm plan as ee nt dn p in onlin la gn ( eFi p 12% g 15% aune rel, 8d ). esi Fe gm ne ad le ts w 35% o b 36% e er e re m pror esent e lika etly iv e to of con the si dU. erS. p51% rp og 31% 47% op rula amts t ion h.at help with planning major problem were more likely to report that the same programs would also be helpful in improving their mental 29% Somewhat Helpful in Increasing Productiv Hielp ty, wb ithy b A asg ic e and Gender ....................................................... 14 30% Report availability: This report is available on the internet at www.ebri.org Debt counseling or Student loan 30% Help calculating som include ewha ha t vo ing r ve proor he y helpful in alth stim atu ps rov in a ing dd the ition to ir me nt beaing l hefe a blm u td ha g et ( le Fi in , g gy ur aoung nd e 17 e)r. tH how an a ev ge er , 50 ag , a or in , led ss eb etd cuc ouns 26% atee dlin . The g hagdr oup the w low ith est $75,000+ Planning for for health care expenses in retirement, help calculating 21% how much to save for a secure retireme Help nt, wa itnd h help in health. Help calculating 51% consolidation 24% debt assistance 30% how mu52% ch to 30% day-to-day health care comprehensive 23% how much to save The weighted samples of 1,082 workers and 589 retirees yielded a statistical precision of plus or minus 3.0 percentage t phe er chighe entagst e of liketlih hose oods a of ying fe B Bu u e d d lin it g g e e w g t t in in ould st g gre ss be e 12% 14% da ahe bout alpful p nticip pa rte e rp og arr 31% ing a31% m for (34 r e pte irre cm ent ent ). was those w55% h 52% o reported their health status to finances calcul Fia gtur ing e 1 how 5, P m eru cc eh to a ntagen of ticW ipa or te k espe rs S nding aying eTha ach mo t Cer nt ta h in Ed in re uc tiraetm ion eex n atl o p ens to r es Fi b e in n a som ncia el We whall t -or be v ing eryP he rog lpful ram,s Wo comuld pare Bde with 60% financial for a secure <$35,000 33% spending each 33% 49% 20% A T A G L A N C E retirement 20% The Face of Workplace Financial Stress: One man recounts trying to cash out his retirement planning points for workers and 4.1 percentage points for retirees (with 95 percent certainty) of what the results would be if all be fair or poor: 75 percent compared with 51 percent for those reporting excellent or very good he 17% alth (Figure 2). 20% month in males. Furthermore, those younger than age 50 were more likely than those ages 50 or older to report that help Somewhat or Very Helpful in Increasing Worker Productivity, by Debt Status ...................................... 16 30% Table of Contents 17% retirement retire Pm rioe ritiz ntin sa g s va ings w vings hen his daughter’s cancer treatments nearly bankrupted him. “People Younger workers (2 P5 rio -3 ritiz 4 ye inga sr as old vings) we12% 12% re more likely t 29% h33% an older workers (55 or older56% ) 53% to say that budgeting, prioritizing Americans ages 25 or older were surveyed with complete accuracy. Sixty-four percent N of ot fe too m oa r le Nos t at re al p lorted at least somewhat agreeing with being stressed 55% about preparing for retirement calculating how much to save for a secure retirement and help in calculating how much to anticipate spending each 12% Introduction .......................................................................................................................................................... 5 plan for retirement, but they don’t plan for cancer. . .It’s kind of terrible when you start savings, expense management, financial planning, and debt counseling programs would be helpful for their mental Figure 16, 10% Percentage of Workers Saying That Certain Educational or Financial Well-being Programs Would Be E com mpp loy are erds a wr iteh 53 p increa esi rcngly f ent of oc m us ae leds. Of on the tho fin se aynoung cial st err e th ss t an a hag t et he 50ir, w 61 or pke errcs ea nt re fe fa ltc s in trge, ss and , whil are e see 54 p king ercew nt a yof s tto hose help month in retirement 46% would be helpful in preparing for retirement. 47% 46% 45% 10% 10% Very Expense management 9% 7% 31% 58% t Ea xpe king nsey m our an akg ids’ em esa ntvings a 11%ccount and p 32% aying the electric bill.” 54% health (Figure 18). Single females, compared with single males, were more likely to claim that health care planning, Stress About Preparing for Retirement .................................................................................................................... 5 a re gd euc s 50 or e it. The oldSom e groa did. ls ew a ha Thos ret m or e y rVe w iait d rhout : y inc Her lpful in a e absi ang che Iw nc lor or r’s d k ee ar si e p ng grrod eW euc o als rtk iv o eir tw y P , err rod e e dm u uc cor tiing v eit lik yw , e or bly yk p tFa o lam fe ce il e y t l st ur Innov rc eom sseed r e, ................................ a (t 61 tra p ce ting rcent ta le vs. 54 nt, .. 16 p R rior CS it izi Me ng t sa ho vings, dology and b udg - 2018 eting w ould be helpful for their mental health (Figure 19). 55+ 16% 40% Other financial well-being programs scored lower when it came to perceived helpfulness. Fewer than half of workers p im ep rcre ov nting of tthe hose us Mae w y of it 27 h d , ae20 fin ba18 c eh d e C clor hi ont c’s d arg ibut o eg Tr ion (D re ibu e or ne C highe ) plans r). , and more. In other words, increasing workers’ financial well-being 0% Debt counseling Worrying About Finances at Work ................................ 7% 22% ................................................................ 68% ........................... 7 Debt counseling 10% 24% 63% Feels very/somewhat financially Debt is considered a major problem Worries about personal finances at 0% Figure 17, Perceived Helpfulness of Various Educational or Financial Well-being Programs in Helping to Improve the The 2018 survey of 2,042 Americans ages 25 or older was conducted online from Jan. 3, 2018 to Jan. 16, 2018. The thought debt counseling or budg 44% eting help would be helpful (Figure 9). Notably, fewer than four in ten (39 percent) can be beneficial not only to workers, but to the employer as well. 0% Debt counseling or consolidation Help with basic budgeting and day- Student loan debt assistance secure work Health 25 c -3 a 4re planning Budgeting Prioritizing savings 38% Corresponding to the results on worker productivity and debt levels, workers for whom debt was a major problem were Helpfulness of Workplace Financial Well-being Programs .........................................................................................10 Certain financia Wl co orkndit e Fir n’an s Me ion cial p s a nt lana n ril He e ng cor arltehla ................................ teBu d dw get it in h fe g eling st Priroe riss ti................................ zie ngd sav aib ngout s reEtxpense ireme mnt an. ag................................ For ement examp Dle ebt, cfe oun eslin eling g v.................... ery or 17 to-day finances survey included 1,002 workers and 1,040 retirees. Data were weighted by age, sex, and education. The margin of error workers thought student loan debt assistance programs would be helpful in preparing for retirement. No Nott e e : :Th The e r re e m m a ain ind de e rr f f o orr e e a ac c h h c c a att e e g g o orryy i s is t t h he e p pe e rrc c e e n ntt a ag g e e t t h ha att r re e ff u uss e e d d t t o o a an nss w w e e rr t t h he e q qu ue e ss tt io ion n.. more likely to re Sou por rcte t : ha 201 t 8t he Reti re sa me me n t p C rog onfrid ae m ns w ce Su ould rvey. also be helpful in improving their mental health. Specifically, debt 0% 10% 20% 30% 40% 50% 60% 70% 80% I som n or ed w eha r tto fidna ocn ucm iae lly nt sec wor ur ke e rw s’ aint s ne ere gst at iin v velya c rious orre la wte ell d- b w eit ing h fe pe rog lin Sour g ra c st m e:rs, t e 2ss 01he 8 e Re d E ta im rb em out plo ent y p e Cre on e p B fia d er enc ne ing fit e fo Sur Re rv ey r sea e.tir re ch me Ins ntt , itaus 71 te (EBRI) is ± 3.16 perc Soe urc n Sour et : a 20g c 17e e: Re p 2 ti0 re oint 1 me 7 n Re t s f Cto irn em or fide ent na cll w e SC urv on or eyf .ik de enc rs a e Sur nd vey ± .3.10 percentage points for all retirees. Conclusion ................................ So Sour urcc ee: : 2 0 210 71 R 8e Re tire tim rem entent ................................ Co n C fion defn id cenc e Sure ve Sur y. vey. ...........................................................................................15 Source: 2018 Retirement Confidence Survey. Source: 2017 Retirement Confidence Survey. So Sou urrc c e e : :2 2 0 0 1 1 7 7 R R e e tt irire e m m e e n ntt C C o on nff id ide e n nc c e e Su Surrv ve e yy.. Figure 18, Percentage of Workers Who Think Various Educational or Financial Well-being Programs Are at Least c Eouns mploy elin erg s a , e re xpe offe nsreing maw nor agkepm lae cnt e , fin pa rior ncit iaiz l ing wells-a bv eiing ngs, pr fin ogarnc am ias t l phla ann t cing, an ba end as si budg mpe let ing as a pd rog ding ram bs a udg ll h eting ad highe tools to r their Source: 2017 Retirement Confidence Survey. However, younger workers were much more likely to perceive these programs as being helpful than older workers p along erce nt w it of h G those reenw not ald st& re A ss se so d ca ia btout es a p drd ee pd a rq ing uest foions r re ttir o em the ent a nnu felta fin l Re anc tirie am llye secu nt Co re nfi , d wehe ncre e a Sur s only vey 3 (RC 0 pSe)r c ae bnt out of the thos see RCS Methodology - 2017 .......................................................................................................................................19 p we erb csi ent tea s, ge as of s bSom roa wor de -k b w e aha rsed s a t H ss aes e elpful in rting ngatghing Ia m t p tfin he rov a yinc ng wiould aTheir l co a bc eMe he he s, a nt lpaful l He nd to aas spe lt the h, ir bc y m if ic A eg nt aes a a ................................ l he ssia slt ting h (Fi wg or ur ke e r20 s in p ). D .............................. a ey bing t couns dowe n st ling ude want s 17 The RCS was co-sponsored by the Employee Benefit Research Institute (EBRI), a private, nonprofit, nonpartisan public (Figure 10). For example, the percentage of workers ages 25-34 who felt that a student loan debt assistance program w prho ogrfe am lt s in 201 stressed7 a abnd out20 p18 rep . a Que ring stfo ions r re w tireerm e e ant sk e rd ep aor bout ted w be he ing the fin r a wnc oria ke llr ys fe secu lt r st er e (Fi ssg eur d e a b 3out ). Thi the rtir y fin per acnecn ets a of nd those t loa hen pd rog ebrta . m For w tithose h thee la mrp gloy este rps w ercho entha agv ee d n’iff t e yreetnc ste a rb te ed tw ae e pn th rogrose am of witth his m t ayjp or e , dtehe btr e p rh ob as b lem es a en a nd gtrhose eat dw ea itl o hou f t debt p RC olic S y Me retsea hodrolog ch oyr g-a 2018 nizat ion; ................................ and Greenwald & ................................ Associates, a Washingt ................................ on, DC-based market................................ research firm. The 20 ....... 17 19 would be very or somewhat helpful was 50 percent, compared with only 25 percent for those ages 55 or older. Along p wrho epa fe ra ltt ion fo stressred re taib re out me nt pr. ep Sa ubse ring qfo ue r nt re t qiue rem ste ions nt c on wesi re d e th red en a de sk be t d to ab be out m a if t jor he p rw ob or le km er s fe com ltp taha retd v w ar itiou h o s w nlyor 12 kp p la ecre c ent Figure 19, Percentage of Workers Who Think Various Educational or Financial Well-being Programs Are at Least d pr is ob cus lesi mon s (56 and pe er ffcor en t tin p vs. ot 20 ent pe iarll cy e nt ad ).d ing them. and 2018 RCS data collection was funded by grants from Figu a num re 14 ber of public and private organizations, with staff time the same lines as age, those further away from retiremFeig ntu (r6 o e 1 r 0 more years away) were more likely to believe that of fina those ncial w who ell-b de id ing not p rfe og erl st am rs w esse ould d ab b out e b p ene rep fic aria ing l and for he ret lp ire the mem nt b . e In m aor dd eit p ion, roduc 63t iv pe er a ce t nt w or of k.t hose stressed about Figure 20 F Fiigu gure re 1 16 2 Figure 18 Somewhat Helpful in Improving Their Me Figu ntal H re ea 4 lth, by Gender ......................................................... 18 Figure 6 donated by EBRI and Greenwald & Associates. RCS materials and a list of underwriters for 2017 and 2018 may be these programs would be helpful than those closer to retirement (0-5 years away). retirement preP per ara centa tion werge e wor of rie W d or about ke r ps e Wh rsonao l fin Th Faigu n in ce k s w re Var hil 8 eious at wor Ekdu , wcati hile jus ona t 17l por erc Fina ent of ncia those l not stressed Percentage of Workers Who S Figure 2 ay Various Educational or Financial Per Per centa centa Percenta ge ge ofof ge W W or of or ke W ke ror sr S s ke ayin Wrho s Sg ayin Say That g Var C That er ious ta C in E er du Edu tacati incati Edu ona ona cati l or l ona or Fin Fina l an orcial ncia l Percentage of Workers Who Think Various Educational or In order to document workers’ interest in various well-being programs, the Employee Benefit Research Institute (EBRI) Percentage of Those Employed Who Worry About Finances Stress about retirement: Workers were asked if they felt stressed about preparing for retirement in two different accessed aExtent t the EBRI w of the ebsite: wImpact of ww.ebri.org/surveWorrying ys/rcs About Finances at Work about preparing Wfor ell - re bein tireme g P nt w rogr orried ams at w oA rkr e abou att Lea financ se t S s. ome what Helpful in Increasing Percentage Who Feel Various Educational or Financial Well-being Figure 20, PerW cent ell ag -e bein of Wg P orker rs S ogr ayams ing Tha on t Ce Debt rtain Ed W ucill ation Be al o Helpful r Financia in l We Prllepa -being rin Pg rogfo ram r s Would Be Workers Feeling Stressed About Preparing for W W Fin ell ell an - -bein bein cial W g P g P ell r rogr ogr -bein ams ams g P on W rogr ould Debt am Be s W W So ill ould mew Be H Be elpful haSo t or mew in Very H Prha epa t elpful or rin V g er fo in y r along with Greenwald & Associates added questions to the annual Retirement Confidence Survey (RCS) about these ConclusionFin ancial Well-being Programs Are at Least Somewhat Helpful in In addition, workers who considered their debt level to be a major problem were more likely to say that the financial m Figur annere s b s etween the 2017 and 2018 surveys. Despite the differences, it was clear that a significant percentage of at Work and the Frequency of the Worrying, 2017 1 Pron Productivity oductivity, by Age at Work and Gender Progr Somams ewha t W orill Re VeBe rtir y H eme So elpful in mew nt , Im by ha prov t A or ing ge V Their an ery d Me H Y nt elpful ear al He s aUnti lin th, P bl R y repa Detir ebt reme St in ag tusfo nt ................................ r Retirement ....... 18 Helpful in Improving Their Mental Health, by Debt Status programs in 2017 and 20Incr 18 Re . tir Fi eas reme st, q in ue g W nt stions , by or w ke H erav er a Psin rkodu eg d a Ev bctiv out er w ity, Sav hethe by ed r wFa fo orkrmily e R rs fe etir ltInco eme stress me e nt d about their finances and w The ell-RC being S shp ow rog s rRetirement, by V e am mp s p haetric ta aillni yng thatto Impr m de ab nty ov w would or in arious Dem keg rbs a eTh he reeir lpful t str M essed ha enta n th aographic Characteristics bout ol H se p ealt wrho epach, ronsi ing by d for er A ed rege t itrhe em ire d nt e b atnd levw eor l to not b ry about e t ahe ir workers were stressed in both years. In particular, workers with lower incomes or in poor health were more likely to Figure 1, Workers Feeling Stressed About Preparing for Retirement .................................................................... 6 Do you worry about your personal finances while you are at work?; How often do you worry preparation 6 0fo %r retirement. Subsequent questions were then asked about if the workers felt that various workplace fin pro ab nle ce m s a . I6 tn p 0w %or ark tic . I ula n a r, dd 61 it ion pe, rcof ent those of ww oror kerrys w ing ho at c w on orsi kd , e m red an yd ha ebv t e a low mae jor r p p rr od ob uc letm iv it re yp b or ec ted aus te ha of t a the de w btor crouns ying. eliM ng any or Wo feel st rr re y ss ing ed T o a 7A b 0 w % out bout ha tp erxt e p e Fin a nrting , ianc f a for t a e lrl, es d ti o y rat em ou e Wo nt th . in rk ky ou would be more productive at work if you did not spend 70% 7 60% 0% about your personal finances while you are at work? T H o aw s Sa hav t ed ext fe or n tR d et o irem you ent agr ve s.e H or as d ni’sta Sa grv eed e w ait n hd t h He a sf ol al ow Retiir nem g stent ate P m la en n tv ?s .P D re oe pa sn rin ’tg Ha for ve re a t irP e la m nent 25-34 55+ Single Female Single Male Major problem with debt No problem with debt financial well ti- m be eing worp ry rog ing ra a m bs w outould pers on be ab l e fine nafic ncia el a s?nd help them be more productive at work. 55% w consoli orkFi eg rd s b ur atee ion lie 2, vp W er og or tha k re a t r m ts Fe he wyould e clin an b g b St ee r som he ess lp e ee d w d ha A in p btout or re P v pe rae rry p ing a he ring for lpful for re tt o ir Re etm he tir em e nm t in p , einc ntr , ree b p a ya si rVa ing ng rious tor he ir sa D p v er im ng od og uc for rt aiv p rihic e ty tir , e C am ha nd ernt in ac,ct re ce o ra im st sip ing ca sr ......... e th de w irit h 6 Less than $35,000 $75,000 or more 25-34 55+ 0-5 6+ 1 Saved Not Saved 25-34 55+ Employers’ conc ma eke rns s y aou bou fe t e the l st re im ssp ea d c.t of Perfi cna enn tc aia ge l st th re ass t s ton ronw glor y k or p la som ce e pw rod ha uc t a tigr vit eye s s.eem well founded, according to See Employee Benefit Research Institute and Greenwald & Associates, “2018 53% Retirement Confidence Survey,” April 24, 2018, 52% 61% 61% Worrying about finances at work: Thirty percent of workers overall reported worrying about finances at work. 90% 51% 51% 32 me nt pearl he centa lt of h ttho hroug se 50% w h ho wor consi kpladce er ed ed uc deabttion to anot l and befin 50% a ap nc roib al w lem e ll (- Fi bg eur ing e 11 prog ). rAa m prs. og ram he 50% lping 59% with basic budgeting and 59% 50% w suw rv we.y e brri.o esurg lts. Ove /pdf/surve rall, th ys/rc irtsy/ 2018/ perce2018R nt of w CS_ ork Re erps ort_V repor 5M teG dAc whe orc ry ke ing d.pa db f;ou and t fin La isnc a Gr es a eetn w wa or ldk, ( Cra Figig u rCop e 4) e. laOf th nd, ae nse d Jack 60% 60% 60% This EBRI I 5ss 0% ue Brief examines these questions from the RCS to show how many workers feel stressed about their Figure 3, 50% P Re etire rce me nta ng t e of Workers in Variou 56% s Financial C 56% onditions, 48% by Str56% ess About Preparing 56%for Retirement ........... 8 50% Frequency of Worrying Furthermore, of those worrying about fina 47% nces, 70 percent worried at least somewhat often. Many important factors Worries About Finances 48% day-to-day finances is also thought to be moreC he alcul lpful b ation y those having debt as a major problem (63 percent vs. 36 VanDerhei, “The 2017 Retirement Confidence Survey—Many Worke 77% rs Lack Retire 77% ment Confidence and Feel Stressed About 80% 76% 76% worrying about their finances at work, just under a 75% third (31 percent) said they do so very often, over a third (39 Needs 74% 53% finances and preparing for retirement. Furthermore, workers’ ratings of various workplace programs are discussed. 44% About Finances Workers most lik 71% ely to believ 71% e that workplace educational and financial well-being programs would be helpful are were correlated with thisW wh or il re ying. at W For or k example No , ne Ca alcul rly t ah tion ree quarters (71 percent) of those who said debt was a major Retirement Preparations,” EBRI Issue Brief, no. 431 (Employee Benefit Research Institute, March 65% 21, 2017). 51% percent for those Calcu w la ittio h no n problem with debt). 35% 68% 42% 50% 42% percent) said somewhat often, and more than a quarter (29 percent) said every once in a while. 70% 2 Figure 4, Percentage of Those Employed Who Worry About Finances at Work and the Frequency of the Worrying, 50% 50% 64% For more deta 50 il% about the move to an online panel from using a random digit dial te63% lephone techn 63% ique, see Greenwald, younger, have lower income 41% s, consider debt to be a major problem, or do not have a retir 41% ement plan—with the problem worried about finances at work, compared with just 9 percent of those who said debt was not a problem. More 32% 60% 46% 45% 40% 38% 40% 38% 44% $75,00 or mor 58% e 38% 38% 58% 52% 45% 2017 ................................................................................................................................................ 8 Copeland, 4 a0 60% nd % VanDerhei (201 Per 7) cen end t Y no es te 1. 43% 56% d W iff hil ee re w nc or es k ein m rs wa ho ny ha cav ses en’ tb e ev ing er su sav be st da nt for ia rl. etThi ires ma ernt gue ws f ere or le tss he lik preov ly is to ion o value f suc dir he c ptr og retrir ae m m s ebneting platnni arg ng ete he d lp, at tthe hese y than half (55 percent) of those who were not confident about living comfortably in retirement were worried about Family Income 35% Many factors were correlated with being more likely to worry about finances at work (Figure 5). Nearly three quarters 34% <$75,0000 Stress About Preparing for Retirement 33% 64% Very often 40% 40% 31% t w ye prees of mor w eor 50% lik ke er ly s .t o value debt counseling or consolidation and help with basic budgeting and day-to-day finances than finances at work vs. just 7 percent of those who were very confident. (71 percent) of 40% those who said debt was a major problem worried about finances at work, compared with just 9 37% 37% 37% Figure 5, Percentage of Those Employed W 31% ho Worry About Finances at Work, by Various Factors, 2017 ............... 9 35% In the 2017 and 2018 RCS, questions about fe34% eling stressed about preparing for retirement were asked in different 30% the workers who have saved for retirement. Fair Nea /rP ly oo si rx in ten (59 percent) workers who have not saved for retirement 75% 3 40% 0% 32% percent of those who said debt was not a problem. More than half (55 percent) of those who were not confident about 30% Health Status 25% w The aysr.e R su elt gs fo ardle r s tho s of se the who q ue hast dion not , a sa si vg enif d for ica nt re tnu irem mb ee nrt of are w m orixe kerds . rT ehe por se ted w or fek eelirng s we strre ess le. ss In 201 likely7, th to ee m q bue rac st eion a sked, Helpfulness of workplace financial well-being programs: An overwhelming majority of workers thought the 24% said that help with budgeting would be somewhat or very helpful compared with 43 percent who have saved for 30% 18% 51% Figure 6, 3 E0xt %ent of the Impact of Worrying Exce Ab llen out t/ Fi Ver na yn G ceoo s a dt Work on Productivity at Work ................................. 9 living comfortably in retirement were worried about finances at work vs. just 7 percent of those who were very 30% 30% 25% 30% r “e Ctur ire re m nt en lyt, p how lanni sng tress pre og d ra arm e s, you but m tehe nty a lly we orr e em m or oteion lika elly ly , to if a em t a blr l, aa ce b out prog prra em pas d ring eafor ling r e wtit irh e m de eb nt t ?t”ha The n thaose vaila wbho le had following programs would be either very or somewhat helpful: help calculating how much to save for a secure retirement (Figure 12). Somewhat If yes 14% confident. Furthermore, workers who have not saved for retirement or did not have a defined contribution plan were 20% 24% 20% 39% Bachelor’s Degree or Higher 20% 54% sa response ved fors r rea tnge irem de n frtom . A gva ein ry, st this re sased rgue to s for not ta atr g ae ll ting streof ssetd he . se Sev pern p ogo re a fte rm cn e snt , a s of itw is only orkers lr og ep ic or al th ted ab t ew ing orkveerrs w y st ho resased re and retirement (75 percent), help calculating how much to anticipate spending each month in retirement (72 percent), 20% Figure 27 0, %Perceived Helpfulness of Various Educational or Financial Well-being Programs in Helping Prepare for Education more likely 2 0 2t% 0 o %worry at work than those who had saved for retirement or had a defined contribution plan. 20% No Bachelor’s Degree 61% st G a e rqugg tua ting rlin tea rg t (w t24 he ith d 2 pim 0e %re p cb a etc nt tw )on ould saw id or see the kpk y la he w ceelp rperw od som itu h th ce tiw veit ha iry , d t e a st b m rte a b ss je or e fo d itr y e a b of see out w k or ip ng rkeep he ra s rlp ting houg wfo ith r ht r r e e rte tir itre ir em e m m e ent e nt nt p ( Fi la pla g nni ur nni ng. eng 1 ).a nd financial planning for 10% health care expenses in retirement (72 percent), and help with comprehensive financial planning (68 Retirement ..................................................................................................................................... 11 planning programs would increase their productivity at work (Figure 13). The other programs that had higher percent). 10% 50+ Other chara0% cteristics associated with worrying about finances at work include being younger: 38 percent of those ages 54% With 20 per 1c 0e %nt of workers considering debt to be a major problem and 43 percent considering it to be a minor 10% Age Every once in Figure 18 0, %Percentage Who Feel Various Educational or Financial Well-being Programs Will Be Somewhat or Very likelihoods for increased workplace productivity include financial planning (48 percent) and health care planning (47 Saved Didn't Plan No Saved Didn't Plan No Saved Didn't Plan No Sa 29% ved Didn't Plan No 25-34 repor 10t %ed 10 % being worried vs. 16 percent of those ages 55 or older. Unsurprisingly, those with lower family incomes 61% a while <50 problem, along with 35 percent of workers not having saved for retirement, there is a large number of potential Other financial well-being programs scored lower when it came to perceived helpfulness. Fewer than half of workers Helpful in SavP ereparing Plfor an Retirem Se ant ve ................................ Plan Sav................................ e Plan Sa ................................ ve Plan ... 11 percent) programs. Those programs with a slightly lower level of perceived helpfulness in worker productivity were were more likely to worry about finances at work—although 21 percent earning $75,000 or more said they worried at 0% Much more Somewhat more No more Don't know w orkers who are currently or could in the futu Fem re ba ele faced with financial issues. Therefore, workplace financial well- thought debt counseling or budgeting help would be helpful. Notably, fewer than four in ten (39 percent) workers 0% Workers 64% budgeting (43 0% percent), prioritizing savings (41 percent), and expense management (40 percent). Interestingly, debt Help with comprehensive Planning for health care Help calculating how much Help calculating how much work. productive productive productive GenD d eb ert counseling or consolidation Help with basic budgeting and day-to- Student loan debt assistance 0% 0% Figure 9, Perceived Deb Hetlpfuln coune sss eli nof g or Va c rio on us M sol E a id d le u ac tia on tional or Fi He na lpn w cia ith l We ball si- cb b eing udge Prtog ing ra a m ns on d daD y-e to- btd in Help ay ing being programs could Finap nla cia y l p an im lannin pg ortant Bru ole dg e in he ting lpingP w rioor ritk izin er gs sa ad vin dg re sss their Exp fin en asnc e ial strugg Deb le t c s. ou nseling thought student loan debt assistance programs would be helpful in preparing for 53% retirement. However, younger workers financial planning expenses in retirement to save for a secure to anticipate spending each counseling 0% (29 percent) was thought to be the least likely d ay to fib nan e che es lpful for productivity. Financial planning Budgeting Prioritizing savings Expense Debt counseling EBRI IssueB Bri ude g f e is re ting gistered in the U P.rio S. ritiz Patin eng t s an ad v in Tr g asdemark O Expe ffice n . sIe S m SN a : n 0a 8g 87 e ? me 13n 7X t /90 088D 7 ? e1 bt 37 c X o /9 u0 n s$ e .lin 50g +.50 management finances Preparing for Retirement ................................................................................................................. 12 Debt counseling retirement Budgeting month in retirement were much mor Soure ce lik : 20e 1l 7y Re tti o rep me er nt cC eo iv nfi ede the ncese Surv p eryog . rams as being helpful than older workers. management These worrying workers were then asked if they would be more productive if they were not worrying about finances. Source: 2018 Retirement Confidence Survey. Source: 200% 18 Retireme 1n 0t % Confiden 2c 0e % Survey. 30% 40% 50% 60% 70% 80% © 2018, Employee Benefit Research Institute ?Education and Research Fund. All rights reserved. Source: 2017 Retirement Confidence Survey. If workers’ worrying less about their finances leads to higher productivity and increased mental health, employers could Source: 2017 Retirement Confidence Survey. Source: 2017 Retirement Confidence Survey. Again, younger w Sour ork ce e:r s w 2017e Re re ti rm emor ent e C lik on efly id enc to e thin Survk ey th . at some of these programs were helpful than older workers. In Over 50 percent rSo ep uor rct ee : d 2 0t1ha 7 Rte t tihe reme y w nould t Con fb ide e n m cor e Su e rv pe rod y. uctive—18 percent much more productive and 35 percent Source: 2018 Retirement Confidence Survey. Source: 2018 Retirement Confidence Survey. benefit through greater worker productivity and healthier workers. This could offset the costs of providing financial particular, younger (ages 25-34) workers were more likely to think that debt counseling, expense management, e e e e e e e e e e e e e e A e e e eb b b b b b b b b b b b b b b b b brr r r r r r r r r r r r r r r r r re i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i.s o o o o o o o o o o o o o o o o o oe r r r r r r r r r r r r r r r r r rg g g g g g g g g g g g g g g g g g a rIIIIIIIIIIIIIIIIIIc s s s s s s s s s s s s s s s s s sh s s s s s s s s s s s s s s s s s s u u u u u u u u u u u u u u u u u u re e e e e e e e e e e e e e e e e e ep B B B B B B B B B B B B B B B B B B or r r r r r r r r r r r r r r r r rrief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief t fr o• • • • • • • • • • • • • • • • • •m A A A A A A A A A A A A A A A A A Atu u u u u u u u u u u u u u u u u u hg g g g g g g g g g g g g g g g g g eu u u u u u u u u u u u u u u u u u E s s s s s s s s s s s s s s s s s sB tttttttttttttttttt 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 R0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 I ,,,,,,,,,,,,,,,,,,E 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2d 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0u 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1c8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 a t ion • • • • • • • • • • • • • • • • • • N N N N N N N N N N N N N N N N N N o o o o o o o o o o o o o o o o o o a..................n 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 d5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 R 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 esearch Fund © 2018 Employee Benefit Research Institute 19 15 13 14 16 11 12 18 10 17 2 5 7 6 4 9 8 3 Defined Retirement Family Saved for Contribution Plan Age Confidence Income Debt Retirement