Press release
Principal® Survey Shows Retirement Goal “Reset” for Many U.S. Workers Amid Recent Market Volatility and Inflation
Workers seeking less lavish retirement to maintain financial health and lifestyle DES MOINES, Iowa--(BUSINESS WIRE)-- American workers cite saving enough for
About this update from Principal Financial Group Inc
[{"type":"text","content":"\nWorkers seeking less lavish retirement to maintain financial health and lifestyle\n\n DES MOINES, Iowa--(BUSINESS WIRE)--\nAmerican workers cite saving enough for retirement as their top financial priority in a new survey by Principal Financial Group®, replacing dreams of a lavish retirement with simpler goals of maintaining the current standard of living amid ongoing market volatility and inflationary pressures.\n\nThe Principal® Retirement Security Survey included nearly 1,000 consumers and 215 plan sponsors in the United States. According to the findings, a considerable percentage of workers (71%) said their key goal in retirement is “maintaining my standard of living,” while less than half (44%) cited splurging periodically in retirement as a priority. The biggest concerns workers say they have in retirement, in order, are maintaining a healthy lifestyle, enduring market losses, outliving savings, and meeting daily expenses.\n\n“For most Americans, living comfortably with the occasional splurge on their favorite activities or travel destinations is the ultimate goal in retirement,” said Sri Reddy, senior vice president, Retirement & Income Solutions at Principal. “In the current environment of high inflation and potentially lower investment returns, we are seeing something of a retirement reset among U.S. workers. As a company, we are focused on providing the solutions people need to help feel secure in their planning for their post-working years.”\n\nCurrent Stressors for Retirement Savers\n\nUnfortunately, 40% of those surveyed said they feel behind in their retirement savings. Like most Americans, this group has likely felt the effects of recent stressors from inflation to market volatility and the ongoing impacts of the COVID-19 pandemic. In fact, surveying showed inflation, the economy, and the future of the nation – alongside mainstay concerns such as healthcare and aging parents -- are among the top stressors for U.S. workers.\n\nFinancial Health: Resources Available, But Often Neglected\n\nRetirement planning remains a focal point for 40% of workers, who list the activity as their top financial priority — followed by reducing debt (37%) and updating or creating a will, trust, or estate plan (30%). This financial focus is especially true for workers who are making career moves in the current labor market. When consi...