National Save for Retirement Week
Did you know that this week (October 20th - 26th) is National Save for Retirement Week? I didn't, until surfing Twitter this morning! Learning of this campaign reminded me that on October 1, the Teacher Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF) released its second annual Financial Advice Survey results. What better time to share the findings?
The survey was conducted by an independent research firm between August 28 and September 2, 2013 of a national sample of 1,000 individuals 18 years and older. Respondents provided information around their preferences, behaviors, and attitudes when it comes to receiving financial advice.
For a bit of background, the TIAA was founded in 1918 through the Carnegie Corporation of New York and the Carnegie Foundation, with the goal of, "supporting the financial well-being of college teachers through a pioneering system of annuities and low-cost life insurance." TIAA survived the Great Depression of 1929 due to its investing practices. Even Albert Einstein become a participant in 1933. Then in 1952, the College Retirement Equities Fund (CREF), a variable annuity, was created.
I personally found the survey results to be extremely interesting when I thought about my family and friends. As an HR professional, I also found them interesting when it comes to thinking through staff service offerings. What's your take?
According to the survey:
- There was an 11 percent jump in individuals who noted they have been asking for financial advice concerning retirement from 2012 (52 percent) to 2013 (63 percent) (See report page 2).
- Approximately 48 percent of respondents noted that it is hard to know which sources of financial advice can be trusted. Likewise, about two-fifths of respondents think good financial advice costs more than they can afford (p. 1).
- Generational differences are dramatic. Forty-three percent of Generation Y respondents (ages 18 to 34) noted that they have no or little information and knowledge when it comes to retirement financial planning. Yet, Generation X (ages 35 to 44) respondents are the most likely to be seeking financial and retirement savings advice (80 percent). They are also the generation that is most likely to currently be using online tools for financial advice or a financial service provider website (p. 5).
- Women indicate less confidence than men in the amount they have saved for retirement. While 65 percent of men say they are confident that they are saving enough, only 56 percent of women indicate the same (p. 6).
- Meanwhile, 37 percent of respondents shared that they do not like talking to anyone about their finances (p. 1).
Do these findings surprise you? Is your organization currently offering financial planning services or assistance to staff? Is this a service you have contimplated offering? Please share your thoughts in the comments section below!