Washington, D.C., Dec. 17, 2024 (GLOBE NEWSWIRE) -- A national survey conducted by MissionSquare Research Institute reveals that 43% of Hispanic employees in state and local government worry about having enough money to live comfortably in retirement. This figure is significantly higher than that of White (33%) and African American (25%) employees. Similarly, 44% of Hispanic respondents are concerned about having enough money to last through retirement, compared to 36% of White and 34% of African American respondents.
These findings are particularly striking given that most state and local government employees have access to both defined contribution accounts and defined benefit pension plans. Recent research from the Institute shows that many public employees continue to face financial challenges, with a significant number struggling to manage their daily living expenses.
The research, Retirement Survey: Breakouts by Race/Ethnicity, also finds that 39% of Hispanic employees are “very worried” about their ability to retire on time, compared to 29% of White and 28% of African American employees.
“Our research clearly indicates that public sector employers need to assess the financial wellness of their employees, especially Hispanic workers,” said Zhikun Liu, Ph.D., CFP®, Head of MissionSquare Research Institute. “Such a high level of financial worry can significantly distract public workers, many of whom hold high-stress public safety jobs. Our findings suggest that state and local government employers should consider reviewing their retirement benefits across various demographics and increasing financial education initiatives and communications, particularly for Hispanic employees.”
Additional key findings from the survey include:
- Perceived sufficiency of retirement benefits: Hispanic employees were the least likely to report that the retirement benefits provided by their employer were very or somewhat sufficient to meet their retirement needs.
- Impact of benefits on retention: African American respondents were the most likely to say that retirement and non-retirement benefits positively influenced their decision to remain in their current jobs.
- Financial education interest: Hispanic respondents expressed the highest interest in receiving additional financial education or information.
- Retirement asset drawdown plans: The most common response among Hispanic employees regarding plans to draw down their retirement assets was, “I don’t know.” In contrast, the most common response among White respondents was, “I will do my own calculation,” while African American respondents were most likely to express interest in consulting a financial professional.
This survey, conducted by MissionSquare Research Institute in collaboration with Greenwald Research, reached a nationally representative sample of 1,009 state and local government workers between September 13 and October 4, 2024. It supplements a recent report from MissionSquare Research Institute, Public Service Employees’ Financial and Retirement Security.
About MissionSquare Research Institute
MissionSquare Research Institute promotes excellence in state and local government and other public service organizations to attract and retain talented employees. The organization identifies leading practices and conducts research on retirement plans, health and wellness benefits, workforce demographics and skill set needs, labor force development, and topics facing the nonprofit industry and education sector. MissionSquare Research Institute brings together leaders and respected researchers. More information and access to research and publications are available here.
About MissionSquare Retirement
Since our founding in 1972, MissionSquare Retirement has been dedicated to simplifying the path to retirement security for public service employees. As a mission-based financial services company, we manage and administer over $80.5 billion in assets.* Our commitment to delivering results-oriented retirement plans, education, investments, and financial education sets us apart. Explore how we enable public service workers to build a secure financial future. For more information, visit www.missionsq.org or follow the company on Facebook, LinkedIn, and X.
*As of September 30, 2024. Includes 457(b), 401(k), 403(b), Retirement Health Savings (RHS) plans, Employer Investment Program (EIP) plans, affiliated IRAs, and investment-only assets.
Bina Handa MissionSquare Research Institute brhanda@missionsq.org
