401(k) Specialist Issue 2 - 2023 - 7

401(k) NEWS YOU CAN USE
Inflation Causing Participants to Struggle
with Finances, Mental Health
of inflation on the cost of living, general economic conditions, and
rising interest rates.
Beyond concerns about economic conditions, in general, more
than half (58%) of workers are significantly worried about one or
more aspects of their personal finances, with some of the frequently
cited being saving too little for retirement, credit card debt, and
building emergency savings.
Survey results, in combination with John Hancock Retirement's
participant data, found that workers who engage with their retirement
plans digitally-by logging in to the plan website or opening
email communications from their plan-are more likely to report
that they're in good financial shape and on track for retirement than
their less-engaged peers.
In addition, employees themselves say that financial wellness proA
JOHN HANCOCK RETIREMENT report finds sharp declines in
financial progress, with employees now twice as likely to take a
negative view of their finances (42%) than a positive one (20%).
With the market declines across asset classes in 2022 and
the potential for a recession dominating news coverage, 70% of
respondents say they're worried a great deal about the economy.
The most frequently cited issues were concerns about the impact
grams reduce their financial stress (82%), make them more likely to stay
with their employer (78%), and make them more productive (70%).
Overall, mental health has seen a positive shift since last year,
with 65% describing their mental health as good compared with
53% previously. Despite this improvement, 7 in 10 say the challenging
economic backdrop has had some impact on their mental
well-being, with 16% of those saying it's had a major impact.
Most Americans Not Counting on Social
Security for Retirement Income
WITH SOCIAL SECURITY now a decade out from insolvency absent
Congressional action, 74% of Americans say they can't count on
receiving Social Security benefits when planning for retirement income,
according to the 2023 1Q Quarterly Market Perceptions Study
from Allianz Life Insurance Company of North America.
The study found that most worry about their long-term financial
stability, with 78% worrying that they might not be able to
afford the lifestyle they want in retirement due to the increased
cost of living.
This is up from 73% last quarter and 68% in Q1 2022. Meanwhile,
66% worry that if they don't increase their retirement savings soon,
it will be too late to have a comfortable retirement.
At the same time, 88% said it is critical to have another source of
guaranteed income beyond Social Security benefits in order to have
a comfortable retirement.
" Social Security benefits are often the backbone of a retirement
strategy but it cannot be your entire strategy, " said Kelly LaVigne,
vice president of consumer insights, Allianz Life. " A strong retirement
strategy will ensure you have enough guaranteed income to
cover your essential expenses. That guaranteed income can
come from Social Security benefits along with other investments
and protection products such as annuities. "
ISSUE 2 2023 | 401kSpecialist.com
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401(k) Specialist Issue 2 - 2023

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