America’s Public Sector Employees Are Happy at Work, But Majority Aren’t Confident They Are on Track for the Retirement They Envision
25 July 2024 - 11:30PM
Business Wire
Corebridge Financial survey finds public sector
workers' leading financial goal is “saving enough to retire when
they want,” but only 41% believe they are on track
America’s public sector workers report feeling satisfied with
what they do for a living, with 80% saying they are happy in their
chosen professions, according to a new study from Corebridge
Financial surveying healthcare, education, government and
non-profit employees. While 42% say they hope to celebrate the end
of their careers with a long retirement of 20 or more years, just
41% feel they are on track to achieve the retirement they envision
and nearly a quarter (24%) are unsure if they are saving
enough.
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“Those who dedicate their career to public service have
demanding jobs that make a real impact on our society. And while
most enjoy what they do, they also desire the freedom to retire on
their own terms,” said Terri Fiedler, President of Retirement
Services at Corebridge Financial. “Achieving those aspirations
requires thoughtful planning to chart a course for action leading
up to and through retirement.”
Turning Thoughts and Goals Into Action
Public sector workers’ top financial goal as identified by 71%
of respondents is saving enough to be able to retire when they
want. However, few have a specific vision to help take that next
step to turn planning into action. Only 26% say they have clearly
defined goals and expectations related to how much money they want
to have saved before retirement. The same percentage said they have
clearly defined goals and expectations related to how they will
spend their time in retirement. Just 17% say they have a very good
understanding of how much monthly income they’ll need in
retirement. Of those who say they have at least a general
understanding of how much income they’ll need, four in ten believe
they will require between $3,000 and $5,000 a month.
This uncertainty brings challenges for many workers, with 62%
citing saving for retirement as a leading financial stressor,
behind inflation (83%), student loan debt (78%) and overall
financial well-being (73%).
“Those in public service share a common passion for helping
others, but everyone has their own unique personal goals and
financial needs,” continued Fiedler. “Plan sponsors, consultants
and providers have a rewarding opportunity to partner closely and
deliver retirement plans, resources and experiences to help those
who help us, throughout their financial journey.”
Helping Public Sector Workers Take Action in the
Workplace
Workplace retirement plans can play a critical role in helping
public sector workers achieve the retirement they envision.
Retirement savings plans (IRA, 401(k), 403(b) or 457) tied with
Social Security as the top resource public sector employees intend
to use to fund their retirement, cited by 73% of respondents. More
than 65% said defined contribution retirement plans are a very
important workplace benefit, ranking behind only health insurance
and paid time off.
Of those contributing to their workplace retirement plan, more
than half (52%) contribute between 1-5% of their salary with the
plurality (22%) contributing 5%.
Although 60% of public sector employees said they have access to
a defined benefit (pension) plan, surprisingly, just 41% expect to
fund their retirement with a pension.
“For public sector workers, it’s important to understand how
your various retirement assets can work together to avoid gaps in
retirement funding — whether your portfolio consists of a workplace
retirement plan, pension, Social Security benefits or other saving
and investment vehicles,” continued Fiedler. “Connecting these dots
as part of a broader financial plan is an area where financial
professionals can help. Public sector employees may want to explore
if they have access to the planning services of a financial
professional as part of their workplace retirement plan.”
The impact of advice is clear: 78% of respondents who work with
a financial professional say they are more confident in their
ability to retire.
The 2023 Corebridge Public Sector Workers poll was conducted
online November 7-13 by Morning Consult among a national sample of
1,103 public sector workers, including those in healthcare,
education (including K-12 and higher education), government and
non-profits.
Additional insights can be found in this whitepaper.
About Corebridge Financial
Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for
more people to take action in their financial lives. With more than
$390 billion in assets under management and administration as of
March 31, 2024, Corebridge Financial is one of the largest
providers of retirement solutions and insurance products in the
United States. We proudly partner with financial professionals and
institutions to help individuals plan, save for and achieve secure
financial futures. For more information, visit
corebridgefinancial.com and follow us on LinkedIn, YouTube and
Instagram.
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version on businesswire.com: https://www.businesswire.com/news/home/20240725457795/en/
Işıl Müderrisoğlu (Investors):
investorrelations@corebridgefinancial.com Jay Russo (Media):
jay.russo@corebridgefinancial.com
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