Survey: Emotional and financial well-being tied to retirement readiness
- State Street Global Advisors’ (SSGA) 2016 Biannual Investor Survey of Millennials and Generation X found that a disproportionate amount of employees who scored high on the financial metrics of the poll considered themselves happy, reports ASPPA.
- These survey respondents said they experienced less stress and had more confidence in achieving their goals in life. ASPPA says the survey sponsors claim the respondents attribute their emotional and financial well-being to their employers. A Financial Finesse’s analysis found that as their financial ratings ticked up a few points, their retirement balances rose by 27%, says ASPPA.
- Survey results also showed that among employees suffering from financial distress, 80% were less likely to contribute to a retirement fund and 10.7% had their wages garnished. Also, these employees averaged 17 hours of absenteeism a year.
Other studies show a correlation between emotional well-being and retirement readiness, such as surveys by Aon, Ernst and Young, and Financial Engines. Studies also found that millennials feel they are better prepared for retirement than previous generations said they were. And as the SSGA survey found, millennials are more likely to look to their employers for information on saving for retirement.
Since employees with emotional and financial well-being cite their employers as responsible in the SSGA survey, HR can step up employers involvement by arranging retirement training and savings sessions, setting up employee wellness programs and providing help with financial problems, perhaps through employee assistance programs.