SECURE 2.0 will change retirement plans, but employers need to ramp up financial wellness

According to a recent study by TIAA, less than half of US workers have enough savings to cover six months of expenses, and about 60% say they are stressed about their finances. Further, more than half of respondents in the TIAA study believe companies have a responsibility to help employees maintain financial wellness as they continue to face financial hardships in the wake of the pandemic. Another recent study by Franklin Templeton revealed that three out of four workers want their workplace to provide more resources to help them with not only retirement savings but their overall financial well-being.

Against a volatile market environment, the decline in the availability of Defined Benefit Plans, less inflation-adjusted Social Security purchasing power, longer lifespans and these increased expectations from employees, the pressure is being felt from all angles. Employers need to provide more support and solutions, and government plays a critical part in setting parameters to help provide safe and secure retirement opportunities.