Serving Those Who Serve Our Communities
Helping Public Sector Workers Achieve Retirement Readiness
Public service employees are the backbone of our communities, but as the retirement landscape shifts, it’s clear that relying solely on pension plans is no longer enough. The new era demands a proactive approach to retirement savings, and we’re here to help public sector workers prepare for the future with confidence.
Corebridge Financial surveyed public sector workers across education, healthcare, government, and nonprofit fields to understand their needs, priorities, and the obstacles they face in planning for retirement. The results offer valuable insights for both employees and employers.
Key Insights from the Survey
- Happiness at Work
- 80% of public sector workers report they are happy with their jobs, with 38% saying they are very happy.
- Job satisfaction remains high, but 43% of employees are open to better opportunities, with higher pay, better retirement benefits, and job flexibility as the primary motivators.
- Top Financial Priorities
- Saving for Retirement: 88% prioritize saving for retirement.
- Managing Debt: Paying off student loans and credit card debt are equally important financial goals.
- Emergency Fund: 80% aim to start or grow their emergency fund.
- Financial Stressors
- Inflation: 83% of employees cite inflation as their top financial stressor, followed by student loan debt (78%) and general financial wellbeing (73%).
- Retirement Expectations
- Retirement Savings: 73% of employees plan to fund retirement through their retirement savings plan.
- Retirement Timing: Most employees plan to retire at 65, but only 41% feel they are on track to achieve their retirement goals.
Plan Features to Improve Retirement Readiness
We understand that balancing the need to save for retirement with day-to-day financial obligations can be difficult. That’s why the SECURE Act 2.0 provides new provisions to help:
- Penalty-Free Emergency Withdrawals: Access up to $1,000 from retirement savings for emergency needs.
- Student Loan Payment Matching: Employers can match student loan payments as retirement contributions.
- Increased Access for Part-Time Employees: Lower eligibility requirements for retirement plan participation.
- Federal Match for Low-Income Workers: 50% federal match on the first $2,000 of retirement savings (effective 2027).
What We Can Do for You
- Auto-enrollment & Auto-escalation: Automatically enroll new employees and gradually increase contributions over time.
- Employer Matching: A top driver for increasing employee savings is the employer match. Take advantage of this feature to help employees maximize their savings.
Take Action Today
Ensuring retirement readiness doesn’t have to be an overwhelming task. With the right plan features and support, employees can achieve financial security for both today and tomorrow.
Steps to get started:
- Assess Your Current Situation: Review your financial priorities, including debt management, emergency savings, and retirement contributions.
- Consider Your Future Needs: How much will you need for retirement, and how long will it last?
- Leverage Available Resources: Take advantage of employer-sponsored plans, tax benefits, and financial education resources.
This article is posted at corebridgefinancial.com
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