Workers are looking more closely at the SECURE 2.0 Act to understand how some rules could help them better manage their finances, according to a new Charles Schwab study.
Schwab’s 2024 401(k) Participant Study also found that over four years since the start of the COVID-19 pandemic, flexible work arrangements are still important to a large majority of workers with 401(k) plans and have become more attractive than a raise for many.
Additionally, 64% of workers say their employers have taken action to help them manage financial stress, compared to 52% who said the same last year, according to the study.
The survey found that 32% of workers want help understanding how the SECURE 2.0 Act and other new regulatory and legislative changes affect their retirement plan. More workers have become aware of aspects of SECURE 2.0 that could help them manage their finances as employers have begun adopting the provisions. The greatest interest is in the federal government’s plan to make matching contributions to employee retirement accounts based on income.
Other SECURE 2.0 Act Provisions that are generating interest include:
“As employers navigate changes they can make within their retirement plans, it’s important to evaluate which provisions could add the most value for their employees,” said Marci Stewart, Director of Client Experience at Schwab Workplace Financial Services. “It’s still early days for SECURE 2.0 adoption as employers consider the potential it holds to build on the support they are offering employees across a range of financial needs.”
On the issue of flexible work arrangements, 84% of workers consider them important, and 57% say they would be willing to forgo a portion of a salary increase for more autonomy over when and where they do their job. The percentage of Boomers willing to forgo a salary increase for a more flexible work arrangement increased from 29% to 38%. Gen Z (75%) and Millennials (71%) remain the most willing to make this tradeoff. Flexible work arrangements are slightly more important to women (87%) than men (82%), but fewer women would forgo a raise to secure the perk.
Among women respondents, 36% say that the ability to work from home is a must-have benefit, and 45% cite flexibility in work hours and location. The work from home option is more of a must-have for Millennials (36%) than Gen X (29%), Gen Z (26%) and Boomers (25%). Flexibility in work hours and location are viewed as a must-have by 52% of Gen Z, followed by Millennials (46%), Gen X (39%), and Boomers (34%).
Employees also cited actions that their employers have taken to mitigate financial stress
Increased pay, 39%
Offered flexible work arrangements, 19%
Increased 401(k) match, 18%
Provided access to financial wellness/education resources, 15%
