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Is Working Longer A Smart Retirement Strategy?

Is Working Longer A Smart Retirement Strategy?

By: Kristin Andreski, Senior Vice President/General Manager, ADP Retirement Services Are your employees saving enough to retire when they are ready? According to recent research, chances are they’re not. EBRI’s 2017 Retirement Confidence Survey (RCS) finds almost half (47%) have less than $25,000 in retirement savings. Employees know they need to save more – most (59%) believe they should be saving 20% or more of their household income to live comfortably in retirement and they acknowledge there will be consequences to under-saving. Those consequences include planning to retire later (57%) and saving more later (54%). Today, 38% of employees also expect to retire at age 70 or older. But is planning to work longer really a smart strategy? There are many great reasons to continue working during the retirement years, but a shortfall in retirement savings isn’t one of them. A Bank of America Merrill Lynch (BOAML) report indicates that employees have a number of reasons for staying in the workforce: Staying mentally active – 62% Keeping physically active...

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Recipe for Success: Employers, Employees Collaborating on Retirement Planning

Recipe for Success: Employers, Employees Collaborating on Retirement Planning

By Joe DeSilva, Senior Vice President/General Manager, ADP Retirement Services With National Save for Retirement Week underway, it’s a good time for employers to consider the retirement benefits they offer their employees. Today’s workers are concerned about their retirement savings and the recession of 2008 has re-shaped their views. ADP recently published a whitepaper, “More Participants are Delaying Retirement,” that takes the pulse of employee retirement saving. With employers increasingly focused on providing financial wellness and literacy programs to their employees to encourage early savings, these findings can help employers better understand the concerns employees have as they look toward their financial future. The study sheds light on two key questions for employers to consider: Do employees feel like they are saving enough? Do they believe they’ll hit their investment goals? According to the study, American workers still believe that they are not saving enough for retirement even though the economy is improving.[1] What might have started as a reaction to the recession is now a reality that shapes...

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