Transamerica Reveals More Findings on Retirement Plan Trends in Higher Education
Transamerica today unveiled the second set of findings from its in-depth 2023 survey on retirement plans in higher education, shedding light on the challenges and opportunities educational institutions face in helping faculty and staff prepare for retirement. The complete survey results, with a comprehensive analysis, will be released in January 2024. The survey’s latest findings, gathered from a diverse set of nearly 100 colleges and universities across the United States, highlight topics such as effectively motivating faculty and staff to save for retirement, managing the complexities of regulatory changes, and enhancing the financial well-being of faculty and staff.
The survey reveals that 61% of respondents consider motivating faculty and staff to save adequately for retirement as a top concern, a finding that is more acute in private and faith-based institutions. Moreover, adapting to regulatory changes is a significant challenge, particularly for private and faith-based organizations.
While employers across all industries may experience similar challenges, responses to Transamerica's higher education survey show subtle but significant challenges unique to colleges and universities that may also present an opportunity for financial advisors and consultants serving these institutions.
Concerns about adequate retirement savings
Regardless of plan type and how the institutions are funded, survey respondents believe faculty and staff are concerned about how much they have saved for retirement. The institutions are concerned about how to motivate an appropriate level of saving.
At the same time, many institutions have yet to attempt to quantify the retirement preparedness of their faculty and staff. This finding leaves the possibility that faculty and staff are more prepared than their institutions believe.
Day-to-day financial well-being
Financial well-being is a concern for these institutions, as well. They report difficulty assembling or creating a financial wellness program and are concerned about its costs.
From these concerns opportunities arise. While higher education institutions typically use a retirement plan advisor or consultant, survey results suggest there is room for them to use these professionals more fully. Advisors, consultants, and recordkeepers frequently offer full-scope financial wellness education and communication programs that can encourage engagement. These tools can:
- Allow participants to make decisions that may lead to increased savings
- Provide employers with a clear view of participant progress toward fully funded retirement
- Allow for better plan oversight
- Ease compliance and fiduciary concerns
Laura Gaynor, National Practice Leader for Defined Contribution Plans at Transamerica, said of the survey findings, "Our research clearly shows the urgent need for higher education institutions to step up their retirement preparedness efforts. There is a significant chance for these institutions to use financial professionals' expertise to close the savings gap and ensure their faculty and staff's financial wellness.” She added, “Addressing the needs of colleges and universities reflects Transamerica's mission to help people live their best lives and empower them with the necessary tools and resources for a secure retirement."
Transamerica introduced its first set of survey findings in November 2023. Those findings illuminated how pooled retirement plan solutions may become an important option for higher education institutions in the years to come.
Transamerica demonstrates its commitment to higher education institutions by actively addressing these challenges. The forthcoming full report, "Retirement Plan Trends in Higher Education 2023," will explore these challenges and propose potential solutions. It aims to offer valuable insights for higher education institutions to improve their retirement planning strategies and support their faculty and staff toward a secure retirement.