Throughout the month of April—Financial Literacy month—our colleagues in Human Resources have engaged with our community regarding financial wellness.
As open enrollment begins on Wednesday, consider a few important facts about retirement savings, according to a study by Ramsey Solutions:
- Almost half of Americans do not save for retirement.
- Those who do, are not saving enough.
And, according to a report from the International Longevity Centre:
- Americans need to save something between 11% and 18% of their income to experience a "comfortable retirement."
When we think about setting aside money for retirement, it is important to remember that compound interest works best with time. It is best to start thinking about our financial futures as early as possible. That’s why we suggest our employees start contributing to retirement as early as their 20s, which maximizes their time to earn more interest on previous interest earnings.
Moreover, with UK’s 200 percent employer match, savings have the potential to increase even faster.
If employees haven’t already, we encourage them to contribute 5 percent of their base salary to retirement. Once they begin, UK contributes an amount equal to 10 percent of the salary—doubling the amount— into the individual’s retirement savings.
Of course, personal target saving rates will differ depending on several factors, such as the age someone began saving, the age someone hopes to retire, desired retirement lifestyle, and how much already has been saved.
That’s why we recommend that our employees—throughout the year, but particularly during open enrollment—take advantage of the resources available on campus, focused on financial literacy. For example, the Retirement Analyzer, available through our award-winning financial wellness platform, Enrich, shows individuals if they are on track for retirement in two minutes or less.
Enrich, available for free to all UK employees, provides a variety of tools and tips related to saving, debt, insurance, and benefits, among others.
In addition, in 2015, UK hired a certified financial planner as a financial well-being officer for employees. As part of UK’s exceptional benefits, employees now receive up to five free appointments a year with Todd M. Macaulay, CFP®.
Todd is a certified financial planner working in HR as our Financial Well-Being Officer. Todd brings more than 19 years of experience in personal finance, including working for Fidelity Investments and John Hancock, to one-on-one appointments with UK employees.
Employees can connect with Todd— virtually or in person for support with a specific situation, milestone, or goal— to take greater control of their finances.
After all, financial wellness is a vital component of overall wellness. As a campus committed to—and powered by—the talent of our people, we strive to provide resources that empower employees to tend to their financial futures.
Have a great week.
Eric N. Monday