HOUSTON--(BUSINESS WIRE)--America’s public sector workers report feeling satisfied with what they do for a living, with 80% saying they are happy in their chosen professions, according to a new study from Corebridge Financial surveying healthcare, education, government and non-profit employees. While 42% say they hope to celebrate the end of their careers with a long retirement of 20 or more years, just 41% feel they are on track to achieve the retirement they envision and nearly a quarter (24%) are unsure if they are saving enough.
“Those who dedicate their career to public service have demanding jobs that make a real impact on our society. And while most enjoy what they do, they also desire the freedom to retire on their own terms,” said Terri Fiedler, President of Retirement Services at Corebridge Financial. “Achieving those aspirations requires thoughtful planning to chart a course for action leading up to and through retirement.”
Turning Thoughts and Goals Into Action
Public sector workers’ top financial goal as identified by 71% of respondents is saving enough to be able to retire when they want. However, few have a specific vision to help take that next step to turn planning into action. Only 26% say they have clearly defined goals and expectations related to how much money they want to have saved before retirement. The same percentage said they have clearly defined goals and expectations related to how they will spend their time in retirement. Just 17% say they have a very good understanding of how much monthly income they’ll need in retirement. Of those who say they have at least a general understanding of how much income they’ll need, four in ten believe they will require between $3,000 and $5,000 a month.
This uncertainty brings challenges for many workers, with 62% citing saving for retirement as a leading financial stressor, behind inflation (83%), student loan debt (78%) and overall financial well-being (73%).
“Those in public service share a common passion for helping others, but everyone has their own unique personal goals and financial needs,” continued Fiedler. “Plan sponsors, consultants and providers have a rewarding opportunity to partner closely and deliver retirement plans, resources and experiences to help those who help us, throughout their financial journey.”
Helping Public Sector Workers Take Action in the Workplace
Workplace retirement plans can play a critical role in helping public sector workers achieve the retirement they envision. Retirement savings plans (IRA, 401(k), 403(b) or 457) tied with Social Security as the top resource public sector employees intend to use to fund their retirement, cited by 73% of respondents. More than 65% said defined contribution retirement plans are a very important workplace benefit, ranking behind only health insurance and paid time off.
Of those contributing to their workplace retirement plan, more than half (52%) contribute between 1-5% of their salary with the plurality (22%) contributing 5%.
Although 60% of public sector employees said they have access to a defined benefit (pension) plan, surprisingly, just 41% expect to fund their retirement with a pension.
“For public sector workers, it’s important to understand how your various retirement assets can work together to avoid gaps in retirement funding — whether your portfolio consists of a workplace retirement plan, pension, Social Security benefits or other saving and investment vehicles,” continued Fiedler. “Connecting these dots as part of a broader financial plan is an area where financial professionals can help. Public sector employees may want to explore if they have access to the planning services of a financial professional as part of their workplace retirement plan.”
The impact of advice is clear: 78% of respondents who work with a financial professional say they are more confident in their ability to retire.
The 2023 Corebridge Public Sector Workers poll was conducted online November 7-13 by Morning Consult among a national sample of 1,103 public sector workers, including those in healthcare, education (including K-12 and higher education), government and non-profits.
Additional insights can be found in this whitepaper.
About Corebridge Financial
Corebridge Financial, Inc. (NYSE: CRBG) makes it possible for more people to take action in their financial lives. With more than $390 billion in assets under management and administration as of March 31, 2024, Corebridge Financial is one of the largest providers of retirement solutions and insurance products in the United States. We proudly partner with financial professionals and institutions to help individuals plan, save for and achieve secure financial futures. For more information, visit corebridgefinancial.com and follow us on LinkedIn, YouTube and Instagram.
