Retirement

Despite an uncertain economic environment, retirement plan participant outcomes thrived in 2023, bolstered by strong growth in employee contributions, according to a preview of Vanguard's annual "How America Saves" report.

Employers can help employees save by automating and incentivizing emergency savings, but it's key to customize messaging that is unique to a specific employee demographic to increase the likelihood of them taking action.

The new Saver's Match program launches in 2027, as a provision of SECURE 2.0, and allows low-income employees to receive a 50% federal matching contribution of up to $1,000, in addition to any employer match.

Against this retirement planning backdrop, however, employees are saving less for retirement, with the average amount now saved at $88,400 - a decrease of $10,000 from 2021, according to a Northwestern Mutual study.

Women report feeling knowledgeable about day-to-day finances such as paying bills and saving for emergencies, but less confident about building wealth and creating investment portfolios, a New York Life Wealth Watch survey found.

Almost 7 in 10 young adults agree their employer should provide services that address financial stress.