Americans Who Plan Ahead for Workplace Open Enrollment are Twice as Likely to Have a Positive Outlook on Retirement
01 Outubro 2024 - 12:30PM
Business Wire
Corebridge Financial research reveals that
while more than 80% of workers believe it’s good to review
retirement plans while selecting other workplace benefits, most do
not
As the workplace benefit enrollment period approaches for many
employees this November, a new survey from Corebridge Financial
suggests workers who are already preparing for the process are more
likely to feel positive about their retirement plans. With more
than 75% of respondents saying they begin preparing for their
benefits selection at least one week prior to open enrollment,
those who plan ahead are twice as likely to have a positive outlook
on their retirement plans going into the open enrollment period
compared to those who do not.
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Preparation is key
The more positive retirement outlook of those who prepare ahead
correlates with an increased intent to take retirement planning
actions during open enrollment. More than 4 in 10 (42%) of those
pre-open enrollment planners say they will review their current
retirement plan contribution amount, compared to just 25% of those
who do not plan ahead. Similarly, 48% of those who plan for open
enrollment said they intend to increase their retirement plan
contributions during this period, compared to just 19% of those who
don’t plan ahead.
Out of 41% of all respondents who said they will increase their
retirement plan contribution during open enrollment, younger
employees are the most eager to up their retirement savings during
this period. Of note, Gen Z workers are most likely to increase
their contribution, including 51% who plan to increase it by 2% or
more.
Maximize your retirement potential during open
enrollment
“The Corebridge research found that the benefits most commonly
associated with open enrollment are health insurance, dental
insurance and vision insurance,” said Terri Fiedler, President of
Retirement Services at Corebridge. “Just as employees are focused
on the benefits that strengthen their physical health during open
enrollment, it’s also a great time to evaluate the workplace
benefits that strengthen your financial health and take action,
whether that’s enrolling in your plan, assessing your retirement
readiness or increasing the amount you contribute to your
retirement plan.”
The Corebridge survey revealed that more employees are enrolled
in their company’s workplace retirement plan heading into this
year’s open enrollment period, with 41% already contributing to a
plan compared to 35% in 2023. For those already saving for
retirement through a workplace plan, taking the opportunity to
increase retirement plan contributions can have a lasting impact on
savings power. Hypothetically, someone making $50,000 per year who
contributes 6% of each paycheck would see their retirement savings
grow to $375,470 over 30 years assuming an 8% rate of return on
investments. But if that same person increased contributions to 8%,
their savings would grow to $500,627 over 30 years, not accounting
for employer contributions, salary increases or other factors that
can help grow retirement accounts.1
Opportunities for ongoing support and education
While more than 8 in 10 (82%) respondents say their employer’s
open enrollment process is simple and easy, those who stated the
process is confusing and complex identified one-on-one support as
the most significant factor that would make enrolling in benefits
easier (56%), followed by access to more interactive educational
tools (40%). These types of support resources can also help
employees understand all of the different benefit coverage options,
which is the most dreaded aspect of open enrollment as cited by
nearly 30% of respondents.
“It’s encouraging to see that most employees have a favorable
view of their open enrollment experience,” continued Fielder.
“Building on that, employers have an opportunity to continue
educating and engaging employees on workplace retirement benefits
leading up to, through and beyond the open enrollment period with
targeted communications, planning tools and resources, and with
some plans, access to a financial professional.”
Additional insights on the 2024 Corebridge Open Enrollment
survey can be found at Corebridge Insights & Education.
Methodology
The 2024 Corebridge Open Enrollment survey was conducted online
by Morning Consult on behalf of Corebridge Financial between Aug.
2-3, 2024, among a national sample of 1,035 adults.
About Corebridge Financial
Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for
more people to take action in their financial lives. With more than
$390 billion in assets under management and administration as of
June 30, 2024, Corebridge Financial is one of the largest providers
of retirement solutions and insurance products in the United
States. We proudly partner with financial professionals and
institutions to help individuals plan, save for and achieve secure
financial futures. For more information, visit
corebridgefinancial.com and follow us on LinkedIn, YouTube and
Instagram.
1. Fees, taxes, and rate of inflation are not included in
calculation.
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version on businesswire.com: https://www.businesswire.com/news/home/20241001873834/en/
Işıl Müderrisoğlu (Investors):
investorrelations@corebridgefinancial.com Jay Russo (Media):
jay.russo@corebridgefinancial.com
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