Survey: Fewer Expect to Rely on Employers for Financial Security
Respondents also said they prefer a better benefits package over a larger salary.
Tax incentives for employer-sponsored retirement savings are the most important benefit over the next 10 years for registered voters, according to a recent survey from The American Benefits Council, a trade association that advocates for employer-sponsored benefit plans.
Of the 800 people interviewed for the survey, 27% ranked retirement savings plans sponsored by their employers as the most important workplace benefit, edging out health insurance coverage, which was ranked most important by 26% of the respondents.
The survey also found that many Americans expect they will have to rely more on themselves or the government for financial security over the next 10 years, and less on their employer. Of those polled, 52% said they expect an individual’s role in their own financial security will be larger over the next 10 years, while 45% expect the federal government to play a bigger role, and 39% said they expect that from their state government. But only 29% of those surveyed said they expect their employers to play a larger role in their financial security over that same time period.
As a result, only 18% said they expect to play a smaller role in their own financial future over the next 10 years, and 27% don’t expect any change in their role. Federal and state governments are expected to have a smaller financial role by only 28% and 25% of respondents, respectively, while 25% expect no change from the federal government, and 34% expect no change from state governments. Meanwhile, 35% of those surveyed said they expect their employers to play a smaller financial role in their retirement, and 34% expect that role to stay the same.
From those figures, it’s no surprise that more respondents said they trust the individual financial market for opportunities to save for retirement more than other entities, including their employers.
The American Benefits Council also found that by a ratio of nearly 2-to-1, survey respondents said they prefer compensation packages that emphasize more, quality benefits over a larger salary. The survey found that 60% would take a more generous benefits package and less take home pay, while only 34% said they would opt for a bigger paycheck than a better retirement plan.