Schwab 401(k) Study: Employers Step Up to Help Workers Manage Financial Stress
Increased salary, 401(k) match and flexible work arrangements are among the most impactful benefits
Actions employers took to mitigate financial stress |
|
Increased pay |
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Offered flexible work arrangements |
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Increased 401(k) match |
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Provided access to financial wellness/education resources |
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Provided additional bonus |
|
More workers report feeling very good about their financial health (
“While the markets have generally performed well this year, inflation and economic conditions have continued to put pressure on workers’ finances at elevated levels,” said Lee McAdoo, Managing Director of Schwab Retirement Plan Services. “In the face of external economic factors, employers are supporting their employees with a combination of direct financial assistance and accompanying resources to help them manage financial stress and overall well-being.”
Flexible work still a priority
More than four years since the start of the COVID-19 pandemic, flexible work arrangements remain important to the vast majority of workers with 401(k) plans and have become more attractive than a salary raise for many. Flexible work arrangements are important to
The percentage of Boomers who are willing to give up a salary increase for a more flexible work arrangement jumped from
Women are more likely to say that the ability to work from home (
The potential of SECURE 2.0
Nearly one in three workers (
As employers have begun adopting SECURE 2.0 provisions, more workers have become attuned to the benefits that could help them manage their finances. The most pronounced interest is in the federal government’s plan to make matching contributions to workers’ retirement accounts based on income.
SECURE 2.0 Act Provisions |
Aware |
Would like to learn more |
Government matching contribution to |
|
|
Easier 401(k) withdrawal for emergency expenses |
|
|
Employer contributions as Roth |
|
|
Set up emergency savings account at work |
|
|
Increased contribution maximum for ages 60-63 |
|
|
“As employers navigate changes they can make within their retirement plans, it’s important to evaluate which provisions could add the most value for their employees,” said Marci Stewart, Director of Client Experience at Schwab Workplace Financial Services. “It’s still early days for SECURE 2.0 adoption as employers consider the potential it holds to build on the support they are offering employees across a range of financial needs.”
About the survey
This online survey of 1,000
About Charles Schwab
At Charles Schwab, we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us on X, Facebook, YouTube and LinkedIn.
Disclosures
Workplace Financial Services is a business enterprise which offers products and services through Schwab Retirement Plan Services, Inc.; Schwab Stock Plan Services; and Designated Brokerage Services. Schwab Retirement Plan Services, Inc., provides recordkeeping and related services with respect to retirement plans. Schwab Stock Plan Services is a division of Charles Schwab & Co., Inc. providing equity compensation plan services and brokerage solutions for corporate clients. Schwab Designated Brokerage Services (DBS), a division of Charles Schwab & Co., Inc., provides technology solutions for corporate clients with regulatory requirements to monitor employee security transactions. Schwab Retirement Plan Services, Inc., and Charles Schwab & Co., Inc. (“Schwab”) (Member SIPC) are separate but affiliated entities, and each is a subsidiary of The Charles Schwab Corporation.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20241023542332/en/
Mike Peterson
Charles Schwab
330-908-4334
mike.peterson@schwab.com
Carly Taylor
The Neibart Group
973-618-6993
SchwabRPS@neibartgroup.com
Source: The Charles Schwab Corporation