Access Matters: Unlocking retirement savings for the hourly workforce

More than half of American employees are paid an hourly wage according to the Bureau of Labor Statistics, yet when it comes to retirement planning for hourly employees, this demographic has often been left behind. Our latest Retirement Industry Disruptor™ report aims to understand the attitudes, behaviors, and challenges faced by both hourly workers and franchise owners regarding retirement savings.

Access As a Path To Employee Savings - and Engagement

We surveyed a group of hourly workers both with and without access to an employer-sponsored retirement plan - as well as franchise owners who provide a retirement plan for their workers.

The findings show a powerful connection between offering a retirement plan and a more engaged, stable workforce:

• When hourly workers are offered a retirement plan, 82% participate and save toward retirement.

• 79% of hourly employees said access to a workplace savings plan could factor into their decision to accept a new role.

• Nearly half (45%) of those saving are contributing a meaningful 3–5% of their salaries.

The data from franchise owners highlights positive impacts of providing a retirement plan, but also shows contradictions in their perception of employee retirement readiness:  95% of franchise owners believe their employees are prepared for retirement, while only 55% of hourly workers share that confidence.  

Given the discrepancy, how can business owners drive alignment that improves morale, reduces turnover, and improves the financial future of their employees?