With anxiety running high about not having enough saved for retirement, a new survey finds that virtually all respondents want help saving for retirement while they are working.
AARP’s survey of 1,000 registered voters aged 25 or older reveals that 99.7% of respondents agree about the importance of being able to save for retirement through their paychecks. AARP notes that the views are similar regardless of political affiliation, income or gender.
The survey also finds widespread support for legislation to make it easier for all workers to save for retirement while working. In this case, 9 in 10 (92%) voters agree that elected officials should support legislation that makes it easier for all workers to save for retirement from their paycheck.
Additionally, nearly two-thirds (65%) of employed voters say they are currently participating in a workplace retirement savings plan offered by their employer and these voters almost universally (96%) agree that having a workplace retirement savings plan is important in helping them save for retirement.
Of those who are not currently offered a workplace retirement plan, most say that they would take advantage of an employer-facilitated plan if offered. Nearly one in five (18%) respondents say that their current employer does not offer them a workplace retirement plan. Of these voters, the vast majority (91%) say they would be either “very or somewhat likely” to take advantage of a plan if their employer were to offer one to them (AARP does caution that it was a small sampling for the responses to this question).
Automatic Payroll Deductions
Similarly, 9 in 10 (91%) respondents also support establishing a program to help workers save for retirement at work if their employer does not currently offer them a way to save. Items that voter respondents say would be “very or somewhat important” features of such a program include:
- portability, allowing workers to take their accounts with them when changing jobs (99%);
- available to all employees who do not have a way to save for retirement at work, including for those who work for small businesses (98%);
- payroll deduction, so that contributions are automatically deducted from each paycheck and deposited into a retirement account set up in each worker’s name (96%); and
- voluntary participation, so that participants are not required to make any contributions (90%).
AARP’s research further shows that Americans are 15 times more likely to save for retirement when they can do so at work and are 20 times more likely if their workplace savings is automatic.
Anxiety Running High
AARP’s survey also finds, however, that more than 6 in 10 (63%) respondents aged 25 or older are anxious about having enough money to live comfortably through their retirement years. Remarkably, only 3 in 10 (29%) respondents ages 25–44 believe they will be able to save enough for retirement. Among voters ages 45 or older who are not yet retired, 8 in 10 (81%) wish they had more money saved for their retirement years.
Voters with lower incomes are especially likely to say that they are behind schedule, including three in four (74%) of those with incomes less than $50,000, compared to about a third (36%) of those with incomes of $100,000 or more.
AARP’s survey was conducted by SSRS from Sept. 22–29, 2021, via the probability-based SSRS Opinion Panel, with 944 respondents completing the survey online and 66 completing the survey by phone.
