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.
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?
Question 2: Have you done any calculations or analysis to help you determine how much you need to save for retirement?
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
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:
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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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 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.
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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.
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
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
Employers can play an important role in helping employees build confidence in their financial future.
Financial education and coaching can help employees better understand:
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.
When evaluating employee Financial Well-being resources, consider whether the program:
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.
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
Employees who feel unprepared for retirement often experience higher financial stress, which can affect focus, productivity, and overall well-being.
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
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.
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.