Less-tenured public sector employees worried about retirement readiness: Financial education is key

“Several factors may influence retirement readiness for workers, including one’s income and access to financial education and employer-sponsored retirement plans,” said Zhikun Liu, Ph.D., CFP^®, vice president, head of the MissionSquare Research Institute. “While all employees can benefit from robust retirement planning resources, our research highlights the importance of providing targeted support to those less-tenured workers who may often face greater financial uncertainty as they plan for retirement.”

Emergency savings: More than three-quarters (77%) of employees with less than 10 years of service are worried about their emergency savings, compared to those with 10 to 19 years (71%) and those with 20 or more years of service (64%).

Retirement readiness: More than 81% of employees with less than 19 years of service have concerns about having enough money to last throughout retirement, compared to 76% of those with 20 or more years of service.

Delaying retirement: 77% of employees with less than 10 years of service and 74% with 10 to 19 years of service have concerns about retiring on time, compared to only 63% of those with 20 or more years of service.

Better retirement benefits, such as employer matches, provide additional financial security, which can enhance retirement readiness. Access to a guaranteed income stream in retirement offers employees stability, which is crucial for retirement readiness. Automatic enrollment also plays a crucial role in preparing employees financially.

Additional research from across all employee groups showed that most (65%) of the respondents expressed an interest in wanting financial education from their employers. Employees expressed a desire for education on calculating retirement savings needs and understanding how retirement benefits will be taxed.