A recent survey by J.P. Morgan Asset Management has revealed that many individuals are uncertain how to best utilize their savings and manage retirement planning, which highlights the need for increased communication between employees and human resources consultants.
It also suggests that a human resources consulting company may be beneficial in giving businesses the right resources to supply employees with the tools they need to make better decisions about retirement.
More than 1,000 workers across the U.S. participated in the survey, and while half of the respondents revealed they would prefer to retire before turning 65, only 20 percent claimed they believed this was a realistic goal. An additional 40 percent claimed they planned to “just wing it,” when it came time to retire.
“These findings make it clear that workers do need help to make better decisions. We recommend at a minimum incorporating the combination of features like auto-enrollment and auto-escalation programs into plan design to drive savings rates,” Catherine Peterson, Director of Retirement Insights at J.P. Morgan Asset Management, said in a press release. “More targeted, personalized participant communications, particularly around retirement income projections, is another important piece of the puzzle.”
One of the reasons people may have trouble planning for retirement is that they’re not saving adequately in the years leading up to this event. The 2013 Employee Benefit Research Council Institute Retirement Confidence Survey noted that 41 percent of workers aren’t saving money because the cost of living is too high, Fox Business reported.
Planning to work for longer durations is a method which some American workers turn to address the issues of retirement and sustaining a type of lifestyle during the twilight years. Others may find it more important to making saving money a priority by downsizing their general expenses and approach to spending, according to the news source.