Employees want to ensure security when they retire -- so much so that 57% would prefer better retirement benefits over a higher salary.
According to a new survey by
However, a majority of those surveyed would go further than that: Approximately 55% said they would be willing to reduce their current standard of living in order to reach their retirement goals.
The survey, conducted by
In addition to their work-sponsored retirement plans, 61% of the participants said they have an outside retirement savings account as well. And about 49% said they were likely to increase their contribution limits over the next two years, with more Generation X employees saying they would increase their contributions significantly rather than moderately.
"Were very heartened to see that people continue to be committed to their retirement plans and keep their long-term perspective," said Catherine Collinson, senior vice president at Transamerica Retirement Services.
Some alarming statistics within the survey, however, are that 41% participants do not know how much money they will need to retire. And of those who did give an estimate, 39% said they guessed at the number, while just 15% said they took into account current living expenses, expected investment earnings and the economy. Another 20% said they calculated the number and 10% had the number produced by a financial adviser.
"People on one level are very committed to saving, [but] they need some help and some direction," Collinson said.
Also, most participants said they were only vaguely familiar with the recent tax law changes -- approximately 46% said they were aware of the increased contribution limits, while only 20% said they were aware of the catch-up provisions. Though a majority said they would take advantage of the increased limits, 53% of the employers who were surveyed said the changes would not increase contributions or plan participation.
