Not that long ago, retirement tended to be framed around the “absence” of commitment, as employees focused on freedom from the restrictions of the 9-5 work and commute day. Studies now point to a mindset shift, with employees hoping retirement results in time for personally energizing and meaningful commitments.
Increased Flexibility
In addition to the possibility of living longer than previous generations, many of today’s workers have greater flexibility in terms of the structure of work and home routines. Leveraging technology to get things done regardless of location has shaken up constraints associated with traditional schedules, commutes and work days. Greater flexibility is also shifting traditional ideas about the purpose of retirement, with the desire to spend time doing what feels interesting taking hold:
- Traditional retirement no longer holds much appeal for more than half of Gen Z and Millennials, who are encouraged by the rise of remote work and are more likely than their older counterparts to travel, relocate to somewhere scenic or abroad, or take a chance on starting their own business in retirement.
- Across generations, two-thirds look forward to pursuing work for pleasure while in retirement and hope for a phased retirement – working full-time at first, then part-time, before stopping altogether.
For the youngest generation in the workforce, Gen Z, hopes about how SECURE 2.0 can boost their savings are contributing to a sense of optimism about retirement: “… A third of Gen Z believe their employer could leverage the new legislation to help them save more for retirement by making a matching retirement contribution when they make their student loan payments. Additionally, one-third of Gen Z and Millennials say it will help them save more for retirement while building up emergency savings.” Indeed, according to research by Fidelity, many Americans express optimism about retirement, while acknowledging challenges:
….Compared to their parents’ retirement, over half of younger generations (56% of Gen Z and 57% of Millennials) believe they’ll have a harder time saving for retirement due to the higher cost of living (compared to only 16% of Boomers and 38% of Gen X). Across generations, inflation, consumer debt and building emergency savings are the main barriers to reaching retirement savings goals; although younger people also cite additional challenges such as student debt….Given these common hurdles, all generations wish they had started planning for retirement earlier, including Gen Z, who started planning at an average age of 20.
New Possibilities and New Risks Too…
Employer sponsored retirement plans play an ever bigger role in ensuring workers can live the lives they hope to as they age. Accordingly, plan sponsors find themselves busy modifying plan designs and protocols for the current era, while remaining ERISA compliant. Indeed, heightened attention to fiduciary obligations is essential, given shifts in regulation and precedents set through years of successful litigation against plan sponsors. Protection is a best practice for plan sponsors, and at Colonial Surety, a whole year of Fiduciary Liability Insurance costs less than a few dollars a day.
To further protect the business and retirement plan, Cyber Liability Insurance is included at no extra cost. Armed with Colonial’s liability insurance package, if you face claims of alleged or actual breaches of duty in connection with the employee retirement plan, you’ll be protected with defense costs and penalty limits up to $1,000,000.
Colonial Surety offers a simple and affordable way to protect yourself and your business: just opt in below to upgrade your ERISA bond to include Fiduciary and Cyber Liability insurance. You can choose a 1, 2, or 3-year package.If you already have an ERISA bond package with Colonial, you can even lock in your rates by upgrading to the 2 or 3 year package.
Protect yourself, your business and your plan for the go forward:
ERISA Bond+Fiduciary+Cyber Liability HERE
Providing customers with knowledgeable and friendly service since 1930, Colonial Surety Company is rated “A Excellent” by A.M. Best Company, U.S. Treasury listed and in business all across the country.