Gen Z, baby boomers agree five-year plan is unrealistic
- 8 months ago
The “five-year plan” is dead, as the average American is now planning 12 years ahead, according to new research.
A survey of 2,000 employed Americans found that when thinking about saving for the future, a five-year plan simply isn’t going to cut it.
Nearly three-quarters of respondents said the five-year plan is less achievable today than ever before (74%) because of rising household expenses (59%), inflation (49%) and school debt (43%).
Interestingly, Gen Zers (53%) are just as worried as baby boomers (54%) about whether or not they’ll receive Social Security benefits, citing that this makes the five-year plan less achievable to them.
Conducted by OnePoll for SurePayroll for National 401(k) Day, the survey also found that when thinking about their financial future, 55% of Americans said they need to reconsider what qualifies as a “necessity” to put more money toward retirement.
To get a head start on saving money for the future, 57% are already saving for retirement.
And to help reach their goals, nearly four in 10 would take a second job to help put money towards their future (39%).
Others would prioritize necessary purchases and cut down on impulse spending (48%) while another 46% would work extra hours at their job.
“Employers helping employees achieve their financial goals is good for small business growth, good for employee retention and good for the community,” said Gabriela Rodriguez, 401(k) product marketing manager at SurePayroll. “Offering employees a retirement plan also helps relieve stress for their future, which is especially important for Generation Alpha.”
A quarter of employed Americans admit that despite their efforts, they’re not close to achieving their retirement goals today — especially millennials (22%) — leaving 59% of all respondents wishing that they started saving sooner.
Consequently, one in eight also don’t currently feel prepared for retirement.
While most respondents whose employer offers a 401(k) are enrolled in it (71%), one in five aren’t (19%).
Employed Americans who work at a small business are more likely to enroll in their employer's 401(k) option (82%) than those who work at a private company (72%) or public company (61%).
Those who do participate in the plan said that their employer’s contribution adds value (57%), doubles the value when they do match (56%) and has helpful tax benefits (49%).
Employed adults are being proactive outside of the workplace, too; 57% have a separate retirement fund from what their employer offers, including a majority of those who utilize that offer (74%).
Half of the respondents who have not started saving for retirement yet said they’re waiting for their employer to offer or explain more about a retirement plan and 43% said they haven’t had the time to start.
Millennials’ top reasons for not saving for the future yet are also waiting for their employer to offer more information (60%) and not knowing where to start (40%).
A survey of 2,000 employed Americans found that when thinking about saving for the future, a five-year plan simply isn’t going to cut it.
Nearly three-quarters of respondents said the five-year plan is less achievable today than ever before (74%) because of rising household expenses (59%), inflation (49%) and school debt (43%).
Interestingly, Gen Zers (53%) are just as worried as baby boomers (54%) about whether or not they’ll receive Social Security benefits, citing that this makes the five-year plan less achievable to them.
Conducted by OnePoll for SurePayroll for National 401(k) Day, the survey also found that when thinking about their financial future, 55% of Americans said they need to reconsider what qualifies as a “necessity” to put more money toward retirement.
To get a head start on saving money for the future, 57% are already saving for retirement.
And to help reach their goals, nearly four in 10 would take a second job to help put money towards their future (39%).
Others would prioritize necessary purchases and cut down on impulse spending (48%) while another 46% would work extra hours at their job.
“Employers helping employees achieve their financial goals is good for small business growth, good for employee retention and good for the community,” said Gabriela Rodriguez, 401(k) product marketing manager at SurePayroll. “Offering employees a retirement plan also helps relieve stress for their future, which is especially important for Generation Alpha.”
A quarter of employed Americans admit that despite their efforts, they’re not close to achieving their retirement goals today — especially millennials (22%) — leaving 59% of all respondents wishing that they started saving sooner.
Consequently, one in eight also don’t currently feel prepared for retirement.
While most respondents whose employer offers a 401(k) are enrolled in it (71%), one in five aren’t (19%).
Employed Americans who work at a small business are more likely to enroll in their employer's 401(k) option (82%) than those who work at a private company (72%) or public company (61%).
Those who do participate in the plan said that their employer’s contribution adds value (57%), doubles the value when they do match (56%) and has helpful tax benefits (49%).
Employed adults are being proactive outside of the workplace, too; 57% have a separate retirement fund from what their employer offers, including a majority of those who utilize that offer (74%).
Half of the respondents who have not started saving for retirement yet said they’re waiting for their employer to offer or explain more about a retirement plan and 43% said they haven’t had the time to start.
Millennials’ top reasons for not saving for the future yet are also waiting for their employer to offer more information (60%) and not knowing where to start (40%).