55% of working individuals also report preferring to save enough to last through retirement compared to being completely debt-free
WINDSOR, Conn.--(BUSINESS WIRE)-- Voya Financial, Inc. (NYSE: VOYA), announced new findings today from a consumer survey revealing that, as a result of the COVID-19 pandemic, more than half (54%) of employed Americans are now planning to work in retirement — with many (40%) noting an interest to have a “safety net” to cover unexpected costs and prepare for market volatility as their reasons.
Voya’s data also showed that, despite a world of financial uncertainty, saving for retirement still remains a top priority for many: More than half (55%) of individuals said they would prefer to save enough to last through retirement rather than be completely debt-free. This preference for retirement savings over being debt-free was even more prevalent among individuals currently receiving investment guidance through a financial professional or managed account (67%) and those who are enrolled in a retirement savings plan (65%).
“While we know many are having to address financial challenges due to COVID-19, it is a positive to see that the majority see the value in saving for a secure financial future,” said Charlie Nelson, CEO of Retirement and Employee Benefits for Voya Financial. “In addition to our recent survey, Voya’s own participant data shows signs of a focus on the long term: Of those participants in Voya-managed retirement plans who recently changed their savings rate, nearly 70% increased their contributions.1”
When it comes to generational views on retirement goals, Voya’s data also found that COVID-19 has had an impact on retirement planning for all savers. The survey notes that 59% of currently employed baby boomers plan to work in retirement as a result of the pandemic, as well as 60% of Generation X and nearly half (49%) of millennials. The good news is that this sentiment about retirement is correlating to actions when it comes to saving for the future, particularly for millennials. Voya’s own participant data also shows that among those who have recently changed their savings rate, approximately two-thirds (64%) of millennials are taking steps to increase their contributions, a growth of 16% over the year prior.2
“We’re encouraged to see this understanding of needing to take a ‘long-term view’ exists across age groups, in particular those with a longer retirement horizon,” added Nelson. “While the majority of generations have seen challenging times and volatile markets before, the findings of our survey and our own data show an even greater opportunity for employers to help their employees address both short- and long-term needs. Employers should maintain communications around their workplace benefit offerings to ensure employees understand how the right tools and guidance can help them achieve their retirement savings and broader financial wellness goals. And with open enrollment season about to begin, this is an opportune time to consider ways to ensure employees are taking advantage of all their benefit offerings.”
Voya’s survey also found a promising outlook on retirement saving for most individuals as roughly half (50%) reported ownership of a retirement plan, either through an employer-sponsored plan or an individual retirement account. This number increased from Voya’s prior wave of research in June (44%).
As an industry leader and advocate for greater retirement readiness, Voya Financial is committed to delivering on its vision to be America’s Retirement Company® and its mission to make a secure financial future possible — one person, one family, one institution at a time.
All data outlined in this release, unless noted otherwise, is based on the results of a Voya Financial survey conducted through Ipsos on the Ipsos eNation omnibus online platform among 1,005 adults aged 18+ in the U.S. Research was conducted in five waves in 2020: March 25–26; April 22–23; May 29–June 1; June 29–30; and July 30–31.
1 & 2. Voya plan participant data as of June 30, 2020, compared with June 30, 2019.
About Voya Financial®
Voya Financial, Inc. (NYSE: VOYA), helps Americans plan, invest and protect their savings — to get ready to retire better. Serving the financial needs of approximately 13.8 million individual and institutional customers in the United States, Voya is a Fortune 500 company that had $7.5 billion in revenue in 2019. The company had $606 billion in total assets under management and administration as of June 30, 2020. With a clear mission to make a secure financial future possible — one person, one family, one institution at a time — Voya’s vision is to be America’s Retirement Company®. Certified as a “Great Place to Work” by the Great Place to Work® Institute, Voya is equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible. Voya has been recognized as a 2020 World’s Most Admired Company by Fortune magazine; one of the 2019 World’s Most Ethical Companies® by the Ethisphere Institute; as a member of the Bloomberg Gender Equality Index; and as a “Best Place to Work for Disability Inclusion” on the Disability Equality Index by Disability:IN. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.
Ipsos is the world’s third largest market research company, present in 90 markets and employing more than 18,000 people. Our passionately curious research professionals, analysts and scientists have built unique multispecialist capabilities that provide true understanding and powerful insights into the actions, opinions and motivations of citizens, consumers, patients, customers or employees. We serve more than 5000 clients across the world with 75 business solutions. Founded in France in 1975, Ipsos is listed on the Euronext Paris since July 1st, 1999. The company is part of the SBF 120 and the Mid-60 index and is eligible for the Deferred Settlement Service (SRD). ISIN code FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP www.ipsos.com.
Ipsos is a separate entity and not a corporate affiliate of Voya Financial®.
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Source: Voya Financial, Inc.