New survey details how employers can solve roadblocks to retirement

A new survey conducted by Censuswide and commissioned by Human Interest, the fastest-growing 401(k) provider with over 25,000 customers¹, reveals that 83% of American workers surveyed have regrets about their retirement planning decisions.² Additional findings from the survey detail the many retirement challenges that the average employee faces and the role employers can play in supporting employees to bridge the retirement gap.

The study found that 41% of Americans expect to retire later than planned due to recent financial circumstances and 83% plan to continue working after retirement.³ Against this backdrop, researchers asked respondents what they would change and what they regret about their retirement saving choices. 

Starting too late

68% of respondents said they would have started saving for retirement sooner. Of note, 19% didn’t start saving until they were 41 or over⁴, and 83% of those wish they had started earlier. When asked about their biggest retirement regret, investing too late was the most common (26%), followed by investing too small a percentage or amount of money (14%), and not having enough knowledge to make informed decisions (13%).

Withdrawing from 401(k)s

Additionally, 37% of respondents reported having removed money from their accounts. 17% of respondents have taken a loan against their 401(k) and 23% said they had withdrawn money early before retirement. According to the IRS, individuals can start taking withdrawals from the IRS at age 59 ½ without incurring an early financial penalty. However, there could be an emotional one–regret. According to the survey, 48% of those who have taken a loan and 60% who withdrew money report regretting their choice.⁵

Employers make a difference

Human Interest’s research confirms that employers have a strong influence over whether, when, and how much an employee saves by offering a robust 401(k) including auto-enrollment, employee matches, and financial education. 

According to the survey, when employers offer education around general financial wellness, 91% of employees enroll in their employer-sponsored plan. When no education is offered, only 76% of employees are enrolled.

“These survey results validate the innovations that we continue to drive,” said Marc Fowler, Director of Education at Human Interest. “We’re bridging the retirement gap by providing customized retirement plans for every kind of worker, easy-to-use tools so employees are empowered to take control over their retirement planning, and access to the financial education workers need to make smart retirement decisions.”

To learn more about how employers can better support their employees in retirement planning, download Retirement Roadblocks Survey 2024.

About Human Interest

Human Interest Inc. is a full-service 401(k) and 403(b) provider that seeks to make it easy and affordable for small and medium-sized businesses to help their employees save for retirement. Founded in 2015 and headquartered in San Francisco, Human Interest has helped employees at 25,000+ companies access retirement benefits and a path to financial independence. For more information, please visit humaninterest.com.

Methodology

The research was conducted by Censuswide with 1,041 full-time (non-self-employed) American workers between July 8, 2024, and July 10, 2024. Censuswide abides by and employs members of the Market Research Society which is based on the ESOMAR principles and are members of The British Polling Council.

Media Contact:

Maura Lafferty

Firebrand Communications for Human Interest

[email protected]