2 big reasons our bosses should care that we’re not saving for retirement
We all know it’s tough to save for retirement today. Somehow, workers will have to save more for retirement than previous generations, all while dealing with the pressures of student loan debt, stagnating wages and rising fixed costs.
Some workers are cracking under that pressure, new research by PwC shows. Nearly half of 1,600 workers surveyed said they’ve saved less than $50,000 for retirement. Almost the same number of workers said they will probably have to tap their nest egg to cover unexpected expenses before they retire, driving them to prolong their working years.
Stats like these shouldn’t just trouble individual workers. Here are two reasons employers should be worried, too:
It’s killing their productivity.
Twenty-eight percent of workers admitted money problems have distracted them during their working hours, up from 20% in 2015. Nearly half of workers said they devote three working hours or more each week handling financial issues, up from 37% last year. Younger workers are the most likely group to be distracted at work. More than one-third of millennial workers this year said they worry about meeting their monthly expenses, up from 23% in 2015. Considering millennials make up the majority of the workforce today, employers should pay attention.