Stop worrying about implementing talent attractors like progressive benefits and policies; all you need to attract qualified candidates is a 401(k) plan.
Even though 87% of job seekers say that a 401(k) plan is a “must-have” benefit for them, nearly 40 million working Americans don’t have access to an employer-sponsored retirement plan.
So despite the fact that saving for retirement is a top priority for job seekers, employers are not offering a retirement plan. In understanding the reasons why job seekers want a 401(k), employers can better justify the means for offering one.
Here are some eye-opening statistics from Charles Schwab’s 2020 401(k) Participant Survey that show that offering a 401(k) goes much deeper than just being a part of the benefits package.
A 401(k) Can Reduce Employee Stress
When it comes to significant sources of stress in life, 44% of individuals cited saving enough for a comfortable retirement as their top source of stress, an upward trend from 38% in 2019, and 40% in 2018.
Achieving Retirement Goals With A 401(k)
As far as confidence in retirement goes, only 37% of respondents feel “very likely” to achieve their retirement savings goals, with 21% saying they will retire later than originally planned.
When asked how much they think they need to have saved for retirement, participants believe they need $1.9M saved for retirement on average. This is a hefty goal, which can be more difficult to achieve the longer an individual goes without saving for retirement.
401(k) Savings Will Be A Primary Source Of Income
Participants expect 44% of their retirement income to come from their or their spouse’s 401(k), while the other 56% comes from multiple sources other than their 401(k), such as social security and savings.
With this being said, 32% of participants don’t know how long their savings will last them in retirement, and 68% estimate that will last them an average of 24 years. For perspective, the average retirement savings for those aged 55-59 is $223,493.56. That’s a little over $9,000 every year, which not enough for a sustainable retirement.
These statistics prove that there is much more to saving for retirement than simply investing a portion of your paycheck. Saving for retirement is increasingly becoming more complex, which in turn has employees relying on their employers for guidance and support.
Offering that help and support that is so highly desired may be all you need to win over the perfect candidates for the job.
Open your $0 cost 401(k) today and start attracting qualified candidates.
Photo by Tima Miroshnichenko from Pexels.