Employee retirement readiness has become a growing concern for employers. While many organizations offer retirement savings plans, employees often struggle to understand how much they may need to save, when they might retire, and how Social Security fits into their overall retirement strategy.
Without a clear plan, employees may experience higher financial stress, lower confidence, and uncertainty about their future. For HR and Benefits leaders, supporting retirement readiness can be an important component of a broader employee Financial Well-being strategy.
Key Takeaways
- 76% of employees surveyed were not confident in their ability to determine when they would start their Social Security retirement benefits.¹
- 54% of employees surveyed had not completed calculations to determine how much they need to save for retirement.¹
- Retirement readiness involves more than saving money. Employees also need education and planning support.
- Understanding Social Security is an important component of retirement planning.
- Employers have an opportunity to support both short-term financial challenges and long-term retirement preparedness through Financial Well-being resources, such as MSA.
What Employees Are Telling Us About Retirement Planning
In August 2024, we conducted a survey, and 2,543 employees from hundreds of organizations across the U.S. responded to the following questions:
Question 1: Are you confident in determining when you will start your Social Security retirement benefits?
- 24% said Yes
- 76% said No¹
Question 2: Have you done any calculations or analysis to help you determine how much you need to save for retirement?
- 46% said Yes
- 54% said No¹
MSA's findings closely mirror national retirement research. According to the 2024 Retirement Confidence Survey from the Employee Benefit Research Institute (EBRI), many workers have not calculated how much they need to save for retirement, and only a minority report having a written retirement plan.²
Why Saving Alone May Not Be Enough
In most cases, employees aren't failing to save; they're failing to plan, and that's a much harder problem to solve.
Employees can only make informed decisions about saving when they understand the following:
- How much income they may need in retirement
- What role Social Security will play
- Whether their current financial habits align with their long-term goals
Understanding retirement readiness requires more than monitoring account balances. Employees benefit from understanding how their current financial decisions connect to their future goals and retirement income needs.
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The Urgency of the Situation
In 2025, nearly half (47%) of surveyed employees said they’re unsure if they’re on track to retire—despite their contributions. Another 21% said they know they are not on track.3
Employees need help, and many don't seem to have made any progress with getting that help.
HR and Benefits leaders have an amazing opportunity to provide and properly promote a Financial Well-being program. When leaders do not take action, they allow their workforces to maintain high financial stress and low confidence for the future. This often translates into less engagement and productivity in the workplace.
Retirement readiness is increasingly becoming a workforce issue, not just a personal finance issue. Employees who feel unprepared for retirement often experience higher financial stress, which can affect focus, productivity, and overall well-being.
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The Role of Social Security in Retirement Planning
The lack of understanding about vital financial matters, like Social Security and retirement planning, can lead employees to underestimate how much income they will need in retirement and how much they must save to generate that income.
According to the Social Security Administration, Social Security benefits represent about 30% of the income of the elderly; however, 12% of men and 15% of women rely on Social Security for 90% or more of their income.4
Understanding what one might receive in monthly Social Security benefits is a critical component of any retirement plan.
While Social Security provides an important foundation for retirement income, most employees will need additional savings and investment assets to maintain their desired lifestyle throughout retirement.
Understanding how Social Security fits into a broader retirement income strategy is a critical step in the planning process.
5 Ways Employers Can Support Employee Retirement Planning
Retirement Planning Challenges by Career Stage
Regardless of age or background, all employees can benefit from financial education.
Here are two of the most common questions employees ask MSA Money Coaches with respect to Social Security and retirement planning.
If I'm in my 20s or 30s, why should I care about Social Security or a retirement plan?
It is very difficult to prioritize retirement savings when you are in the early stages of your career or growing a family. However, money saved, properly invested, and allowed to compound over many decades, can represent a large portion of a person's retirement savings.
The younger generations of the workforce need a mentor or coach to help them create and sustain a balanced monthly budget that includes contributing to a retirement account and funding other goals or aspirations.
Research consistently shows that younger workers are less likely to have a formal retirement strategy in place, making early financial education and coaching particularly valuable.5
If I'm in my 40s and 50s, is it too late to start saving for retirement?
It is never too late to start saving for retirement. Many people are in retirement for 20-30 years.
Even if you get a late start, it is important to estimate your monthly and annual retirement lifestyle budget and determine how you will generate the necessary income. If you have less savings, you might need to work longer or part-time.
While the IRS may change the maximum contribution limits for most employer-sponsored retirement plans from year to year, a person could still make up a lot of ground by maximizing their contributions annually.
Many workers in their peak earning years still report concerns about whether they will have enough money to retire comfortably, underscoring the need for practical retirement planning support and individualized action plans.4
How Employers Can Support Employee Retirement Readiness
Employers can play an important role in helping employees build confidence in their financial future.
Financial education and coaching can help employees better understand:
- Retirement savings strategies
- Social Security benefits
- Budgeting and cash flow management
- Debt reduction
- Emergency savings
- Long-term financial goals
- Balancing current and future needs
Employees typically need to work on goals such as creating a budget, reducing debt, or rebuilding their credit before they can start growing their retirement savings.
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Programs that emphasize one-on-one, unbiased, and confidential coaching can help employees address the financial challenges causing them the greatest stress while building momentum toward long-term goals.
Employers that invest in Financial Well-being resources can help employees address immediate financial concerns while also building long-term retirement readiness.
Key Considerations for HR and Benefits Leaders
When evaluating employee Financial Well-being resources, consider whether the program:
- Provides support for both short-term and long-term financial goals
- Includes education around retirement planning and Social Security
- Offers personalized coaching opportunities
- Helps employees build confidence in financial decision-making
- Supports employees across all life stages and income levels
Retirement readiness is not simply a retirement issue. It is part of a broader employee Financial Well-being strategy that can influence stress, confidence, engagement, and overall well-being.
Frequently Asked Questions
How many employees calculate how much they need to save for retirement?
According to MSA's August 2024 survey, 54% of employees reported they had not done calculations or analysis to determine how much they need to save for retirement.¹
Why is retirement planning important for employers?
Employees who feel unprepared for retirement often experience higher financial stress, which can affect focus, productivity, and overall well-being.
Does Social Security provide enough income for retirement?
According to the Social Security Administration, Social Security benefits represent about 30% of the income of the elderly; however, 12% of men and 15% of women rely on Social Security for 90% or more of their income.4
How can employers help employees prepare for retirement?
Employers can provide financial education, personalized coaching, and Financial Well-being resources that help employees understand retirement planning, budgeting, debt management, Social Security, and other financial topics.
Take the Next Step
Interested in helping employees build confidence in their financial future?
Schedule a conversation with our team to learn how MSA supports employee Financial Well-being through personalized coaching and educational guidance.
¹ My Secure Advantage, Inc. August 2024. Based on MSA Member self-reported live event data.
² Employee Benefit Research Institute (EBRI). 2024 Retirement Confidence Survey. 2024.
3 My Secure Advantage, Inc. March 2025. Based on MSA member self-reported live event data. 4,066 responses.
4 Social Security Administration. Fact Sheet: Social Security. Updated 2024.
5 Transamerica Center for Retirement Studies. Retirement Survey of Workers. 2024.
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