Can the lack of productivity at work be blamed on stress related to money and retirement? A new report says yes.
Nearly seven in 10 Millennials and Gen Z Americans say financial stress has negatively impacted their work productivity. That’s according to a survey released by the National Association of Personal Financial Advisors.
About 87% of working Americans said they feel stressed about their finances, and nearly a third (32%) said they spend half an hour, or more of a workday, thinking about their finances.
David Edmisten, Certified Financial Planner for Next Phase Financial Planning, says slowing down and assessing your finances can reduce financial stress. “A lot of people are feeling stress about their finances, and higher costs due to inflation have added to that pressure recently. It’s important to take stock of your current financial situation to understand where you stand. Next, Act on the things that are within your control.You can look for ways to reduce expenses.
The same survey reports that 74% of working adults feel their colleagues are stressed about their finances due to rising inflation.
Additionally, nearly seven in 10 respondents (69%) said they would perform better at work if their employer offered more financial wellness benefits, with more than four in five (81%) of the millennials and nearly three-quarters (74%) of men agree.
Amid inflation concerns and financial stressors, survey data also reveals that Americans are contributing less to their retirement. Nearly three in five working adults (58%) have contributed less money to their retirement due to inflation, with 69% of millennials reducing their pension contributions.
Additionally, nearly half of respondents (49%) said they weren’t sure how much money they needed to retire comfortably, with 55% of baby boomers agreeing.
Chad Duncan of Minimalist Financial understands the confusion: “Knowing how much to contribute to your retirement accounts, where to invest it and whether what you’re doing is enough can be overwhelming. Not to mention including taxes, factoring in inflation and to assess your risk tolerance. These can be resolved by working with an advisor or by picking up a retirement book and calculator.”
The survey reveals that retirement plans offered by employers are not substantial enough for employees’ financial planning goals.
Almost half (49%) of respondents felt that they could not retire comfortably with their employer-sponsored pension plan alone.
“The retirement plan options that exist in the current 401(k) are lacking a lot of options,” Duncan says. Researching external employer-sponsored plans may be the best option. He continues: “Among these options are target date retirement funds. This is a great option for people who don’t have advisors and don’t want to stress that they aren’t doing enough with their retirement accounts.
“Due to the severe impact of inflation and other current financial stressors, consumers are seeking support and understanding from their employers when it comes to financial wellness,” Geoffrey said. Brown, CEO of the National Association of Personal Financial Advisors.
But if employers don’t offer these options, “consumers can more easily manage these financial issues and make the best use of employers’ financial wellness programs with the help of paid financial planners.”
While employee-sponsored financial plans are a great benefit for employees, financial wellness benefits that emphasize financial literacy and personalized, vetted advice from a personal financial advisor can help employees navigate their financial future.
It is becoming increasingly important for Americans to work with a professional they can trust to help them navigate their financial future. Paid financial planners are affordable, regulated and fiduciary, which means they put the interests of the client above their own.
According to Duncan, Americans who suffer from money and retirement stress should ask a professional. “A great first step is to reach out to an advisor or coach to research what they do, how they can benefit you, and what the results may be.”
To find a reputable financial adviser, he suggests going to Wealthtender, which provides a directory as well as a variety of resources for consumers, including details on how to find a financial adviser.
Blaine Thiederman, Certified Financial Planner for Progress Wealth Management, agrees. “If you’re young and working with a financial advisor, they should help you better understand how to create the financial future you hope for by helping you budget, invest more effectively, save more purposefully, to renegotiate your salary and understand what you need to do to retire when and how you want.”
This article was produced by A penny saved and syndicated by Geek Wealth.