Voya Investment Management survey finds employers think their workforce is on track for retirement, but employees say otherwise
30 Novembre 2023 - 6:10PM
Business Wire
Voya Investment Management (Voya IM), the asset management
business of Voya Financial, Inc. (NYSE: VOYA), today released new
findings from its fourth edition of its survey of retirement plan
sponsors, defined contribution (DC) specialists and contributing
retirement plan participants detailing retirement perspectives on
issues such as retirement readiness, investing and overall
financial confidence.
This year, Voya IM surveyed plan participants for the first
time, and their responses show just how much plan sponsors
overestimate participant retirement readiness. Among many findings,
the research found a gap between participant feelings versus plan
sponsor perceptions when it comes to retirement readiness, where a
strong majority (87%) of plan sponsors say their participants are
somewhat or very prepared for retirement while only 63% of
participants feel the same way.
As in 2021, sponsors’ top concerns remained to ensure that their
plans comply with new regulations and that their participants are
properly invested. Reducing plan fees and expenses has also been a
recurrent focus that has grown in significance since 2021, moving
from fifth place in the previous survey to third place this year.
Cybersecurity is also a key concern for plan sponsors.
Turning to the impact of markets, more than half of the
participants surveyed reported that inflation and the state of the
economy will have a severe or major impact on their ability to save
for retirement, while COVID-19 was much less frequently cited as an
obstacle to retirement savings. 37% of participants over age 50
said that they are now planning to retire later than originally
hoped due to the long-term effects of market volatility, inflation
and COVID. When sponsors were asked for their views on the top
long-term combined effects of recent market volatility, rising
inflation and COVID on retirement plans and employee benefits, they
cited an increase in participant investment changes and higher
demand for emergency savings benefits as top impacts.
“Inflation and continued market fluctuations remain a concern
for many Americans particularly for those nearing retirement. As a
result, it’s become clear there is a disconnect between employers
and their employees surrounding retirement readiness,” said Brian
Houston, SVP, Business Development Manager, DCIO, Voya IM.
“Specialists and employers can consider these findings an
opportunity to bring forward more retirement readiness support
solutions, such as offering an expanded investment menu for workers
nearing retirement that includes additional fixed income options,
lower volatility equity options and other strategies, such as
managed accounts, to help employees on their path for a more secure
financial future.”
Voya IM’s research also revealed that retirement preparedness
has a direct impact on an individual’s overall financial
confidence. Voya’s research uncovered an opportunity for plan
sponsors and specialists to offer more education and solutions when
it comes to generating income and becoming prepared in
retirement.
This is relevant as nearly 90% of participants said they are
somewhat or very interested in retirement income solutions and an
investment option which helps provide income during retirement
(87%) and help to understand how to generate income in retirement
so that they can maintain their current lifestyle (87%).
An opportunity exists for specialists and sponsors to boost
guidance and education to improve outcomes
Participants’ interest in several products and services
(including support for transition to retirement, auto features and
support for caregivers) indicates that there is demand for
additional decision support for retirement planning, and is also an
opportunity for sponsors and specialists to adopt and promote these
services within their retirement plan features to help drive
greater financial outcomes for participants. This is proven even
more important for the role of the employer as a majority (82%) of
participants trust the retirement planning services offered to them
by their employer and are confident that the retirement plan
offered through their employer will help them achieve their
retirement goals. In addition, 87% are also more likely to stay
with their employer if they offer competitive retirement planning
services and products.
About the survey:
From mid-February to early March 2023, Voya IM repeated its
online survey of retirement plan sponsors to take the temperature
of the retirement landscape. The survey sought feedback on a range
of concerns such as plan support, investments, participant support,
regulatory and compliance issues and plan costs and fees. Previous
waves of the survey were conducted in March 2021, December 2018 and
April 2016. The survey was expanded in 2023 to include contributing
participants for the first time to better understand their
perspectives on issues such as retirement readiness, investing, and
financial confidence.
The survey includes feedback from 304 plan sponsors, 205 plan
specialists and an online survey conducted among 500
benefits-eligible, employed Americans who are actively contributing
to their employer-sponsored retirement plan.
Certain exhibits distinguish plan sponsor segments by size of
plan. The study divided sponsors into three segments: plans with $1
million to less than $5 million, plans with $5 million to less than
$25 million and plans with more than $25 million. Details on the
definitions and methodologies of the study can be found in the
Appendix. Some exhibits may not sum due to rounding.
About Voya Investment Management
Voya Investment Management manages approximately $312 billion as
of September 30, 2023 in assets across public and private fixed
income, equities, multi-asset solutions and alternative strategies
for institutions, financial intermediaries and individual
investors, drawing on a 50-year legacy of active investing and the
expertise of 300+ investment professionals. Named a Best Place to
Work in Money Management by Pensions & Investments for eight
consecutive years, Voya IM has cultivated a culture grounded in a
commitment to understanding and anticipating clients’ needs,
producing strong investment performance, and embedding diversity,
equity and inclusion in its business.
VOYA-IM
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version on businesswire.com: https://www.businesswire.com/news/home/20231130040846/en/
Media: Kristopher Kagel Voya Financial (201) 221-6534
Kristopher.kagel@voya.com
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