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By Gabriella Petty

You don’t need an office job to start saving for retirement, but a whopping nine in 10 industrial workers still think they do.

A recent survey of 2,000 Americans, half between the ages of 1829 and a half between 3064, looked at how these groups plan for retirement across various fields of employment.

Workers at micro-sized businesses (between 29 workers) were most likely to retire in their 50s (32%), although 24% claimed their present company did not have a retirement plan. That is true in many organizations when employees are purposefully not supplied with a retirement plan. It might be one of the reasons why so many people choose life annuity plans to ensure a steady income stream in retirement.

Another contributing factor to why people opt for the same is that it is one of the few retirement plans in which people can sell annuity payments when they need cash quickly, whether for divorce or remarriage or to acquire a more flexible pension income product instead.

Overall, nearly half of all respondents (47%) think you can be “too old” to start saving for retirement. This mentality seemingly persists while there appear to be more and more retirement home communities developing in Florida. This probable disparity between the two situations found here might seem shocking to some people. (like 55Next – The Villages)

Conducted by OnePoll on behalf of retirement benefits provider Human Interest, the survey also looked at some of the frequent reasons people think they won’t be able to retire.

Among all the reasons employees noted as keeping them from working at their desired level, pandemic-related stress was at the top of the list (44%), with finance workers being the most likely group to cite it as a barrier to reaching retirement (57%).

Meanwhile, 40% of health workers think they won’t have enough money to last the rest of their life, considering that they would need to pay for their food, accommodation, gas, and medical expenses such as memory care.

Similarly, 47% of education professionals think they’ll burn out before reaching retirement, while HR workers are most worried about potential job loss standing in their way (47%).

Two elderly women push shopping carts down a street on September 10, 2010 in Berlin, Germany. Germany’s elderly population is growing and its overall population is shrinking. (Photo by Sean Gallup/Getty Images)

While half of all respondents turn to their savings or checking accounts to save for retirement, preferences differed across industries and company sizes.

People working at enterprise companies (1000+ employees) were most likely to use a 401(k) (52%), 29% greater than those at small businesses (1050 employees). Those at mid-sized businesses (51249 workers) favored real estate (53%), and crypto was a popular choice among those at small organizations with a staff of 1050 (44%).

To ensure they hit their retirement age, 37% would exchange a job they liked for a better-paying one they liked less, and 32% would change jobs to one with a better 401(k).

Respondents ages 3064 were more likely than 1829-year-olds to say they’d change jobs for a better 401(k) (36% vs. 28%).

“The pandemic took a different toll across industries, adding to existing sector-specific challenges when it comes to retirement savings,” said Eric Phillips, Senior Director, Partnerships & Strategic Insights at Human Interest. “Whether you work at an office desk or at a factory, you shouldn’t have to be well-versed in all aspects of finance to plan for your future.”

Forty-four percent of all respondents said they’re using their company’s retirement savings plan, with 3064-year-olds more likely than 1829-year-olds to do so (48% vs. 39%).

Those working in finance and insurance rely on their company’s retirement plan more than other industries (54%), while construction workers were least likely to use their company’s (38%).

Elderly women play a cards game of rummy at the Mireille Mathieu senior citizens’ center on September 20, 2017 in Berlin, Germany. (Photo by Sean Gallup/Getty Images)

And 73% of employed respondents wish their employer provided better 401(k) guidance and education.

“Our results showed that 70% think they’d have a better 401(k) with an office job, suggesting some employers may be unaware of how to improve the retirement plans they offer,” Phillips added. “There are affordable options for companies of any size to automate their 401(k) processes and take some of the guesswork out of saving for retirement for both themselves and their employees. In fact, when given access to a 401(k), our 2020 in-house study found that employees working in manufacturing and other underserved industries are nearly as likely to use their 401(k).”

INDUSTRIES WITH THE MOST 401(K) ENROLLMENT

Financial/insurance 54%

Technology/computer science 53%

Health, medical, fitness and/or wellness 50%

Education 50%

Manufacturing 47%

Construction 38%

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The post Nearly Half Of Respondents Think You Can Be “too Old” To Start Saving For Retirement appeared first on Zenger News.


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