Rising household debt is compromising many workers’ retirement plans, according to new research by retirement finance software publisher HelloWallet. In a recent survey of participants in employer-sponsored defined-contribution retirement plans, more than 60% of households reported that they are accumulating debt faster than they are saving for retirement.
Culprit: credit card debt. Your employees might be spending 20% or more of their paychecks repaying debt.
The takeaway: Despite good intentions to save for retirement, many households are digging holes that will be hard to escape before they stop working. Consider offering personal finance training to help employees assess their financial well-being.
Download the survey results from HelloWallet's website.