Inaugural survey indicates desire for
personalization and workplace assistance to achieve a reimagined
retirement where financial health plays an integral part of overall
wellbeing
Retirement today feels “less cookie cutter than it used to be”,
according to 82% of those polled in Franklin Templeton’s Voice of
the American Worker Survey. The vast majority of respondents
indicate that retirement now looks different for everyone (88%) and
that there is no single path to retirement today (82%). A majority
envision their financial future will be different from their
grandparents (65%), parents (56%), and children (56%).
The inaugural survey, conducted by The Harris Poll on behalf of
Franklin Templeton, is connected to Franklin Templeton’s Retirement
Innovation Initiative (RII), which launched in January 2020 with
the goal of improving retirement in the U.S.
“We believe every U.S. worker and household has the right to
experience financial wellbeing throughout each phase of life,” said
Yaqub Ahmed, Head of Retirement, Insurance & 529 – U.S. at
Franklin Templeton. “New dynamics represent an opportunity for
breakthrough innovation and require imagination, creativity and
collaboration to solve. Our mission with RII is to bring together
industry experts to help improve the future of retirement in the
United States and to guide Franklin Templeton’s retirement strategy
and product efforts in the context of our shared vision of
success.”
A More Holistic View – Financial Health Now Part of Overall
Health
The vast majority of survey respondents associate their current
physical (74%), mental (70%), and financial (66%) health with
wellbeing. More than half say their financial wellbeing isn't
primarily about money but includes their health and lifestyle
(57%).
Interestingly, while workers today place nearly equal importance
on mental (81%), physical (80%) and financial (76%) health, they
feel least in control of their financial (55%) health as compared
to physical (62%) and mental (58%) health.
Many respondents struggle to find a holistic view, with 61%
indicating they need to consult many sources to get an overall
picture of their finances, and 51% stating it is too complicated to
integrate all of their financial info and goals into a single
picture. Seventy percent would like a “Fitbit-like program for
their finances” to easily track everything all in one place.
The Future of Benefits – Closing the Financial Health Gap and
Building Benefits for the Modern Workforce
Three out of four workers want their workplace to provide more
resources to help them with their overall financial wellbeing
(75%), believing their employer should provide incentives for good
financial habits (79%) – as well as good health habits (78%). In
fact, workers are more interested in long-term support, over
today’s monetary gains, with most preferring a boosted 401(k) match
to a raise.
Nine in 10 respondents are also looking for tools to visualize
their future and optimize wellbeing, with top choices being
planning tools and resources (89%). Tools designed to help achieve
financial independence (35%) and visualize long- and short-term
financial goals side by side (35%) top their wish list.
As financial futures become more fluid, personalization is
non-negotiable. Nearly three quarters (73%) of workers expect their
financial management apps and programs to use what they know about
them to suggest the most appropriate resources, while 62% say,
“unless I am getting personalized recommendations, I feel like
financial education isn't very helpful” (68% men vs. 54%
women).
Americans are seeking a holistic and consolidated view of their
finances to achieve overall financial health:
- 73 percent say they wish there was a resource that combined the
financial view of their entire household.
- 73 percent say they wish there were more ways to get a view of
their overall wellbeing.
- 62 percent say they wish they had a ‘wellbeing coach’ to help
with all areas of wellness not just physical or financial.
Changing Retirement Landscape – Financial Freedom is Top
Priority
Eighty percent of respondents agree that the traditional idea of
retirement is no longer accurate for most people’s expectations or
experiences, while at the same time, three quarters (75%) say that
their future financial goals and plans look different today than
they did five years ago.
Respondents also feel it is more important to achieve financial
freedom than to retire but that financial freedom is not always as
attainable. More specifically, 76% of respondents say there is
appeal in achieving financial freedom, while only 56% think it is
likely achievable. At the same time, 69% say there is appeal in
retirement, while 61% say it is likely achievable – a notably
smaller gap.
Workers identified their most important financial milestones
today as financial freedom (76%) and financial independence (74%),
also indicating that financial independence feels more empowering
than retirement (81%). Women find financial independence
particularly appealing (81 percent vs. 68 percent men).
“The American worker is looking to employers to upgrade their
long-term financial health and optimize their overall wellbeing,”
added Ahmed. “Technology will play an integral role for employers
and employees to address these needs. New innovations will allow
individuals to reap the rewards, and educate themselves, so they
may achieve financial independence.”
Methodology
This study was conducted by The Harris Poll on behalf of
Franklin Templeton from October 16 to 28, 2020, among 1,007
employed U.S. adults. All respondents had some form of retirement
savings. Data are weighted where necessary to bring them in line
with their actual proportions in the population. This online survey
is not based on a probability sample and therefore no estimate of
theoretical sampling error can be calculated.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN], is a global investment
management organization with subsidiaries operating as Franklin
Templeton and serving clients in over 165 countries. Franklin
Templeton’s mission is to help clients achieve better outcomes
through investment management expertise, wealth management and
technology solutions. Through its specialist investment managers,
the company brings extensive capabilities in equity, fixed income,
multi-asset solutions and alternatives. With offices in more than
30 countries and approximately 1,300 investment professionals, the
California-based company has over 70 years of investment experience
and approximately $1.5 trillion in assets under management as of
May 31, 2021. For more information, please visit
franklintempleton.com and follow us on LinkedIn, Twitter and
Facebook.
Copyright © 2021. Franklin Templeton. All rights reserved.
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Franklin Templeton Corporate Communications: Rebecca Radosevich,
(212) 632-3207, rebecca.radosevich@franklintempleton.com Prosek
Partners: Cary Sherman, (857) 302-3712, cruterman@prosek.com
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