NEW YORK, Sept. 13, 2016 /PRNewswire/ -- Today's release of the EY Financial Wellness Assessment provides an updated picture of employee attitude toward retirement, debt and daily expenses.
- When asked about the last time they tried to determine how much they would need for retirement, 45% reported estimating their needs within the last 12 months, but 37% of those over 50 said they had never tried. Nearly 41% of 18–25 year olds have begun to think about retirement planning.
- Overall, 43% said they are confident they are on the right track for a comfortable retirement which is down 8 points (51%) since the inaugural assessment in February. Six percent do not contribute anything to a retirement savings plan such as a 401(k), 403(b) or another type of workforce retirement plan while 14% contribute 3% or less.
TRENDING ON DEBT
- When asked to think about assets, debts, savings and how satisfied respondents were with their personal financial situation overall, 46% were satisfied. More than half (58%) of those aged 50-64 stated they were satisfied with their financial situation, the most satisfied of all the age ranges. Thirty-eight percent of 18 to 25 year olds felt unsatisfied with their current financial situation.
- Almost 77% overall (up 4% since February) agreed their current debt was manageable, with 7% stating they had no debt at all. Even 62% of those just beginning their careers or just out of college (18-25 year olds) said their debt was manageable and of those who are over 50, about 80% agreed.
- Nearly 73% of respondents have never paid a bill late. When asked how many times over the past 12 months they had paid a bill past its due date, 20% said they submitted late payments once or twice. Thirty percent of 25-36 year olds have paid a bill late more than once.
- Eighty-eight percent were confident they would be able to come up with $2,000 if an unexpected need arose within the next month. Of those who are 65+ nearly 100% stated they could come up with $2,000 and 76% of 18-25 year olds said they could also. Fifty-seven percent overall believed they could maintain their minimum standard of living in the event of a 6-month absence from the workforce due to medical issues.
- Of the employees who consistently use credit cards, 62% said they pay the balance in full each month which is down from 66% in February; almost 30% pay more than the minimum due (25% in February); the remaining 6% of working credit card users only pay the minimum.
The data reflects assessments of more than 3,000 respondents ranging in age from 18 – 65+, taken between May and July 2016. Respondents are employees of primarily large corporations and large non-profit organizations covering a wide variety of industries.
About Ernst & Young LLP's Employee Financial Services practice
Ernst & Young LLP's Employee Financial Services practice (EFS) is a trusted provider for independent, objective employee financial education and counseling. Our multi-channel approach integrates benefits programs to help employees meet their personal financial goals across career and life stages. To learn how we can help manage fiduciary risk, deliver positive ROI on your benefits programs, and improve employee confidence and financial well-being visit www.ey.com/efs.
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