Planning for Open Enrollment Boosts Retirement Confidence

Boosting Retirement Confidence Through Open Enrollment Preparation

As workplace benefit enrollment approaches, it's crucial for employees to prepare in advance. A recent survey conducted by Corebridge Financial indicates that workers who take the time to plan for open enrollment are significantly more optimistic about their retirement. Over 75% of those surveyed start their preparations at least a week before the enrollment period, and those who are proactive are twice as likely to view their retirement outlook positively compared to those who do not take such steps.

The Importance of Preparation

Those who plan ahead not only feel better about their retirement but are also more inclined to make changes to their retirement plans during the enrollment process. Approximately 42% of pre-planners plan to review their current retirement contributions, contrasting sharply with only 25% of those who don't prepare. Additionally, nearly half (48%) of proactive planners intend to increase their contributions, while just 19% of non-planners have similar intentions.

Empowering Younger Employees to Save More

Younger employees are especially motivated to enhance their retirement savings. Among all respondents, 41% express a desire to increase their contributions during this open enrollment, with Gen Z taking the lead—51% of them planning to elevate their contributions by at least 2%.

Maximize Your Retirement Potential

Terri Fiedler, President of Retirement Services at Corebridge, emphasizes that open enrollment is a prime opportunity not only for health benefits like insurance but for strengthening financial health as well. She urges employees to evaluate their workplace benefits during this time, suggesting they consider enrolling in their retirement plans, assessing their readiness for retirement, or increasing their contributions.

The survey findings show a positive trend in employee participation in retirement plans, with 41% already enrolled heading into the enrollment period, up from 35% in the previous year. For those contributing to a retirement plan, even small increases can have significant long-term benefits. For instance, a worker earning $50,000 who contributes 6% could see their savings grow to $375,470 over 30 years with a hypothetical 8% annual return. If they decide to boost their contributions to 8%, the potential growth jumps to $500,627 over the same time frame.

Support and Educational Resources Matter

Despite nearly 82% finding their employer's open enrollment process straightforward, those who find it confusing noted that personalized support would significantly ease their experience, with 56% highlighting this preference. Moreover, 40% wish for more interactive educational tools to clarify the varied benefit options available, which nearly 30% identify as a major source of worry during open enrollment.

Continuing Education on Retirement Benefits

Fiedler reiterates that a favorable view of the open enrollment process provides an opportunity for employers to enhance employee engagement and education about retirement benefits. She suggests that employers engage employees through targeted communications, planning tools, and access to financial professionals, which can help demystify retirement planning.

About Corebridge Financial

Corebridge Financial, Inc. (NYSE: CRBG) is dedicated to empowering individuals to take charge of their financial futures. With assets surpassing $390 billion as of mid-2024, they are recognized as one of the largest retirement solutions and insurance providers in the United States. Corebridge collaborates with financial professionals to ensure that communities can effectively plan and save for secure retirements.

Frequently Asked Questions

What is open enrollment?

Open enrollment is an annual period when employees can enroll in or make changes to their health and retirement benefit selections.

Why is planning for open enrollment important?

Planning helps employees make informed decisions about their benefits, leading to a more positive outlook on retirement.

How can employees increase their retirement contributions?

Employees can review their current contributions and adjust them during the open enrollment period for future savings potential.

What resources can help during open enrollment?

Employers can provide personalized support, educational tools, and access to financial professionals to assist employees in understanding their options.

What demographic is most likely to increase retirement contributions?

Gen Z workers demonstrate the highest likelihood of increasing their retirement contributions during the open enrollment period.

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