The popularity of 401(k) plans continues to grow among employees, according to a recent survey, which announced a 5 percent increase last year in the number of plans reporting above 90 percent employee participation.
However, despite the increase in 401(k) enrollment by employees, most employers report they aren't convinced that the workforce is preparing adequately today for retirement. In fact, 85 percent of employers surveyed said that they believe that "very few" or "some" of their employees will be financially prepared for retirement. Only 13 percent believe "most" of their employees will be adequately prepared.
These employer responses are even more alarming considering how vulnerable American workers are to suffering unexpected financial hardships, including those resulting from a disability.
With the number of American workers suffering income-limiting disabilities continuing to rise — increasing 29 percent since 2000 — financial planning and preparation have never been more important for America's workforce.
"It's never too late to start planning for the unthinkable," explains Robert Taylor, executive director of the Council for Disability Awareness. "Plus, as responsibility for one's personal financial security continues to shift to the American worker, the need for planning becomes increasingly more critical. Fortunately, with good planning, American workers can improve their chances of long-term financial stability in case of a possible illness or accident."
For info, see: www. disabilitycanhappen. org.
This article was prepared in cooperation with ARA Content.