Expenses Today Can Cost You Tomorrow
41%: Workers who say daily living expenses prevent them from contributing more to retirement plans
Keeping up with day-to-day expenses can be hard enough, let alone setting aside savings, as we know we should. In fact, 41% of eligible workers cite cost of living and day-to-day expenses as the main reason why they do not contribute (or contribute more) to their employer's retirement savings plan.
But maybe all it takes is a little push to get started. If employees were automatically enrolled, most said they would continue to contribute. For example, if enrolled in a plan with a 3% default deferral rate, 77% said they would maintain or increase that savings rate. Only 11% would cancel the contribution altogether.
Although saving can be difficult, it's an important step today for achieving financial security tomorrow.
Source: Employee Benefit Research Institute, "The 2013 Retirement Confidence Survey: Perceived Savings Needs Outpace Reality for Many," 3/2013
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