The latest wave of findings from Logica Research's ongoing Future of Money Study highlights how financial and fintech brands, along with employers, can help improve people's rapidly changing financial lives. Data from the study reveal that over half of working Americans (52 percent), including two-thirds (67 percent) of Millennials, plan to switch employers in the next year.
Findings from the study support the fact that massive changes in the American workforce are driving new demands when it comes to the types of financial benefits individuals are looking for from employers. Over three quarters (77 percent) of workers say it's important for employers to offer financial benefits that help them manage their financial lives. This is most true for Millennials, 84 percent of whom are looking to employers for help managing finances. Millennials want assistance with a broad range of money management needs, including help understanding how to make the most of their 401(k) and retirement accounts (84 percent), when they can retire (84 percent), and how much to save to meet goals (83 percent). Millennials may be driven to find help managing their finances in part because they aim to retire at an earlier age (60) compared to their older Gen X (65) and Boomer (68) colleagues.
At the same time, the majority (77 percent) of working Americans plan to continue income-generating activities after retiring from their main career. They predict these activities, which include side hustles (59 percent), part-time work (48 percent) and short-term investing (31 percent), will add four years to their working lives before they completely retire.
Additional data from the newest wave of the ongoing study indicates that changes in the way people work, their employer expectations, and how they plan for their financial future will continue to transform:
- Fewer people (23 percent) are planning to postpone retirement than they were in Spring 2021 (33 percent);
- 30 percent of Americans are investing more and 30 percent are turning to financial advisors and institutions for guidance; and
- Millennials are becoming more engaged investors, putting more money into the stock market than any other generation, compared to before COVID (30 percent vs. 20 percent Gen Z, 16 percent Gen X, 7 percent Boomers).
"We have been conducting the Future of Money Study for five years, and our findings clearly show that the pandemic has made a lasting impact on how people manage their money,” said Lilah Raynor, founder and CEO of Logica Research. “Americans are more engaged than ever in managing their financial futures. We expect these changes to continue to accelerate the need for financial products and tools to help people improve their financial lives, including tools employers can use to help their employees manage money.”
Source: Logica Research.
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