State Street Global Advisors Retirement Survey Finds Most Employees Stressed and Distracted by Financial Worries
March 18 2015 - 2:00PM
Business Wire
Findings Show 60 Percent of Employees Significantly Burdened by
Financial Stress
State Street Global Advisors (SSGA), the asset management
business of State Street Corporation (NYSE:STT), today released the
findings of its semi-annual employee retirement survey, which
targeted approximately 1,000 employees between the ages of 20 and
69. Overall, the survey found that the stressors having greatest
impact to workers include student loans and mortgages, health care
costs and an unsettled feeling that one has not done enough to
prepare for retirement.
“We all know that financial concerns are usually top of mind for
individuals and families, but the findings from this survey clearly
demonstrate how much concern individuals have about finances,” said
Fredrik Axsater, global head of SSGA Defined Contribution.
“Financial and workplace stressors have the greatest impact on work
quality and productivity, which confirms what we are hearing from
employers—we need to address workplace financial demands beyond
retirement savings. A more holistic approach is needed, providing
tools and opportunities for employees to reduce stress and improve
their financial well-being.”
When it comes to the workplace, the survey found that nearly 60
percent of employees are emotionally stressed and distracted by
their financial situations; 37 percent acknowledged financial
stress has caused their productivity at work to suffer; 25 percent
have missed work due to stress that stemmed from their personal
financial situations; and nearly 50 percent are living from
paycheck to paycheck.
“Eventually, employees' financial problems will affect their
productivity; our survey underscores the importance of the fact
that financial wellness is now part of nearly all of our
conversations with employers,” Axsater continued. “By providing
employees with access to resources and tools that enable them to
improve their financial lives and alleviate daily financial stress,
plan sponsors can then refocus their employee’s attention and
actions towards retirement savings and security. Taking this
holistic approach creates the opportunity to address roadblocks to
retirement readiness while increasing engagement around financial
well-being."
Other key findings of the survey include:
- Lack of a Safety Net: More than
half of the respondents were confident that they could pay for a
financial emergency costing up to $1,000. However, just under half
of respondents acknowledge that they live “paycheck to paycheck,”
which implies that a large financial setback would have a serious
impact.
- The Shifting Debt Burden:
Mortgages, car loans and credit cards carry the heaviest debt
burdens for the majority of respondents, however, debt patterns
shift through life phases from auto/student loans to credit cards
to a mortgage, and lastly loans for their children’s
education.
- Only if it’s Free: Most
respondents cited high cost and lack of convenience as the top the
reasons for not engaging in a financial wellness program.
- Generation Xers are Eager:
According to the survey, 30 to 39 year olds would be the most
likely to take advantage of employer sponsored programs including
automatic savings programs, budget workshops, stress management
courses and one on one financial planning assistance.
TRC Market Research conducted the survey online from January 7-
January 11, 2015. The median age of respondents was 45; 48 percent
were male and 52 percent were female; and 90 percent of respondents
were employed full time.
About State Street Global Advisors
For nearly four decades, State Street Global Advisors has been
committed to helping our clients, and those who rely on them,
achieve financial security. We partner with many of the world’s
largest, most sophisticated investors and financial intermediaries
to help them reach their goals through a rigorous, research-driven
investment process spanning both indexing and active disciplines.
With trillions* in assets, our scale and global reach offer clients
unrivaled access to markets, geographies and asset classes, and
allow us to deliver thoughtful insights and innovative
solutions.
State Street Global Advisors is the investment management arm of
State Street Corporation.
*Assets under management were $2.45 trillion as of December 31,
2014. This AUM total includes the assets of the SPDR Gold Trust
(approx. $27.3 billion as of December 31, 2014), for which State
Street Global Markets, LLC, an affiliate of State Street Global
Advisors, serves as the marketing agent. Please note that AUM
totals are unaudited.
CORP-1331
State Street CorporationAndrew Hopkins,
+1-617-664-2422Ahopkins2@statestreet.comorElizabeth Powell,
+1-202-468-0908powell@daicommunications.com
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