Unrealistic Expectations Could Lead to Broken Retirement Dreams for Younger Generations
KANSAS CITY (PRNewswire), October 21, 2007 - Nearly two out of five Americans between the ages of 25 and 34 expect to retire before they turn 60 with half expecting they'll need to cut back spending on things like shopping and home repairs when they leave the workforce.
But that same group also says they find saving for retirement difficult with family obligations and low salaries topping the list of obstacles.
Those are among the findings of a new study commissioned by financial services firm Edward Jones to coincide with National Save for Retirement Week, a time designated by Congress to encourage retirement planning. The results indicate there may be a disconnect between the expectations of younger investors and the reality they may experience in later life.
Specifically, 39 percent of 25-to-34 year olds expect to retire before their 60th birthday. But they admit they aren't stockpiling the money needed to reach that goal. Thirty-one (31) percent of respondents in that age bracket admit that saving for retirement is difficult because of family obligations and 24 percent cite a low salary as a reason they cannot properly save for retirement.
That same age group recognizes that they will have to cut back in retirement on certain pleasures they now enjoy during their working lives. Fifty-three (53) percent of respondents (ages 25-34) plan to cut back on shopping, and 45 percent also plan to scale back on home investments and repairs.
"Saving for retirement is a sobering concept for all generations," said Clif Helbert, an Edward Jones principal responsible for retirement planning. "There is an obvious disconnect for the younger generations. They understand they have to save now in order to retire comfortably but because of family obligations and lower salaries, they don't think they can commit to a plan to save for retirement."
Other key results from the survey included:
-- 34 percent of respondents between 35 and 44 cite family obligations as
the number one reason for their lack of retirement preparation
-- 32 percent of respondents over 55 cite increasing health care costs as
their primary difficulty when saving for retirement
-- Of the 1,032 participants surveyed, 81 percent of U.S. adults plan to
cut back on spending (shopping, travel, home improvement and dining
habits) in retirement
"What we don't want to see is history repeating itself 20 to 30 years from now," continued Helbert. "The baby boomer generation is dealing with the repercussions of not properly preparing for retirement. The younger generations should learn from the boomers' mistakes and plan early to start saving."/FONT>
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Employees Value Corporate Social Responsibility Efforts
KANSAS CITY (PRNewswire), October 21, 2007 - Corporate social responsibility (CSR), a strategic corporate initiative that has been receiving an increased amount of attention, provides more benefits to an organization than simply reducing costs by recycling and giving back. As stated in earlier research by the Kenexa Research Institute, actively participating in CSR efforts is related to higher employee engagement levels and more favorable views of senior management.
Results in the United States indicate that an organization's CSR efforts also positively affect an employee's personal outlook of the future, satisfaction with their job and confidence in the company's future. Employees who rate their organization as having a strong CSR culture outscored those who view their company's CSR activities as weak on each of these key indicators. Furthermore, employees who work in a strong CSR culture are more favorable toward their colleagues' willingness to do the very best for the organization, and have more favorable views of their company's ability to motivate people to work hard and put in extra effort.
Favorability regarding an organization's CSR initiatives varies notably across industries. Workers in education and the banking services are the most favorable while workers in the light manufacturing, transportation services, hotel services and restaurant industries are the least favorable.
"It is not surprising that education and banking services are high in CSR favorability. Having a sense of community is often consistent with the purpose and mission of most educational institutions. And, by participating in corporate social responsibility efforts, banks not only raise local awareness, they position themselves to gain market share in the communities in which they operate," said Jack Wiley, executive director, Kenexa Research Institute.
Executives, senior managers and those in professional positions have the most favorable views of their employer's support for CSR while operators and laborers have the least. Additionally, those workers who are the newest to the organization, and those who are the youngest in terms of age, have the most favorable views of the organization's CSR activities.
"Actively participating in CSR initiatives has many advantages including setting the organization apart from the competition in terms of employment brand, creating an elevated sense of teamwork among employees, and helping to establish an emotional tie between the employee and the organization," said Wiley.
The report is based on the analysis of data drawn from a representative sample of workers surveyed through WorkTrends(TM), KRI's 2007 annual survey of worker opinions, in the United States, the United Kingdom, Germany, China, India and Brazil.
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