Americans are increasingly worried about their preparedness for retirement, The Hartford found in a survey. Thirty-four percent were either extremely or very worried about their ability to save for retirement, and 56% said they feared they would have to cut back on their contributions.
Additionally, 53% said they expect their employer will either reduce or eliminate their matching contributions to their 401(k) plan.
Tom Foster, Jr., retirement spokesman for The Hartford, said companies should do what they can to encourage workers to save, even if they cut back on matches, by sponsoring educational meetings on retirement savings, adopting automatic enrollment and promoting the Savers Credit that allows a 50% tax credit, up to $1,000, for low earners who make contributions to a defined contribution plan.
In these difficult economic times, Americas workers are worried that they will not have the financial wherewithal to continue their current lifestyles when they retire, Foster said. The good news is that Americans are thinking more than ever about retirement and the need to save for it. The bas news is that they are finding it more difficult than ever to do something about it. Employers do have an opportunity to help.