Schwab 401(k) Study: Employers Step Up to Help Workers Manage Financial Stress
Increased salary, 401(k) match and flexible work arrangements are among the most impactful benefits
Actions employers took to mitigate financial stress |
|
Increased pay |
39% |
Offered flexible work arrangements |
19% |
Increased 401(k) match |
18% |
Provided access to financial wellness/education resources |
15% |
Provided additional bonus |
14% |
More workers report feeling very good about their financial health (24%) compared to last year (20%), but many continue to feel stressed. About half of workers say their financial health has not changed and one in five say it has worsened. Gen Z (37%) and Millennials (35%) are more likely than Gen X (28%) and Boomers (21%) to say their financial health has improved.
“While the markets have generally performed well this year, inflation and economic conditions have continued to put pressure on workers’ finances at elevated levels,” said
Flexible work still a priority
More than four years since the start of the COVID-19 pandemic, flexible work arrangements remain important to the vast majority of workers with 401(k) plans and have become more attractive than a salary raise for many. Flexible work arrangements are important to 84% of workers and 57% say they would be willing to forgo a percentage of a salary increase for more autonomy over when and where they do their job.
The percentage of Boomers who are willing to give up a salary increase for a more flexible work arrangement jumped from 29% to 38%. Gen Z (75%) and Millennials (71%) continue to be the most willing to make this trade off. Flexible work arrangements are slightly more important to women (87%) than men (82%), but fewer women would forgo a raise to secure the perk.
Women are more likely to say that the ability to work from home (36%) and have flexibility in work hours and location (45%) are must-have benefits compared to the men surveyed. The ability to work from home is also more of a must-have for Millennials (36%) than Gen X (29%), Gen Z (26%), and Boomers (25%). Gen Z is the most likely to view flexibility in work hours and location as a must-have (52%), followed by Millennials (46%), Gen X (39%), and Boomers (34%).
The potential of SECURE 2.0
Nearly one in three workers (32%) would like help understanding how new regulatory and legislative changes, like the SECURE 2.0 Act, affect their retirement plan.
As employers have begun adopting SECURE 2.0 provisions, more workers have become attuned to the benefits that could help them manage their finances. The most pronounced interest is in the federal government’s plan to make matching contributions to workers’ retirement accounts based on income.
SECURE 2.0 Act Provisions |
Aware |
Would like to learn more |
Government matching contribution to |
37% |
53% |
Easier 401(k) withdrawal for emergency expenses |
50% |
40% |
Employer contributions as Roth |
47% |
39% |
Set up emergency savings account at work |
37% |
39% |
Increased contribution maximum for ages 60-63 |
49% |
34% |
“As employers navigate changes they can make within their retirement plans, it’s important to evaluate which provisions could add the most value for their employees,” said
About the survey
This online survey of 1,
About
At Charles Schwab, we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.
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Disclosures
1024-YS4G
View source version on businesswire.com: https://www.businesswire.com/news/home/20241023542332/en/
Charles Schwab
330-908-4334
mike.peterson@schwab.com
973-618-6993
SchwabRPS@neibartgroup.com
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