Nonprofit Sector Workers Financial Security and Career Decisions

Transcription

1 Nonprofit Sector Workers Financial Security and Career Decisions Paul J. Yakoboski, Ph.D. Senior Economist TIAA-CREF Institute Women s Institute for a Secure Retirement Annual Women s Retirement Symposium October 24, 2013

2 Survey on Financial Security in the Nonprofit and Philanthropic Sector Joint research with Independent Sector 1,000 full-time employees surveyed Working for a nonprofit organization, such as a charity, foundation, museum, endowment or philanthropic organization Attitudes and behavior of nonprofit sector workers Career motivations Job satisfaction levels Retirement confidence Challenges to retirement planning and saving 2

3 Women in Nonprofits 69% of survey respondents were female 50% 40% 30% Females Males Occupation Females Males Leadership 8% 28% Management Professional Administrative 30 5 Other % 10% 0% 60% 50% 40% 30% 20% 10% Early-career Mid-career Late-career 0% < $25k $25-50k $50-100k >$100k annual salary 3

4 High Job Satisfaction Motivations for Nonprofit Careers Strongly Agree To what extent do you agree or disagree that? Personal satisfaction in the purpose of your job is a strong consideration in your career decisions Employee benefits are a strong consideration in your career decisions (Females more likely to agree) Salary is a strong consideration in your career decisions (Females more likely to agree) Agree Neither Agree or Disagree Disagree Strongly Disagree 65% 29% 5% 1% 1% Nonprofit workers are satisfied with their current employment overall (Females tend to be less satisfied) 18% extremely satisfied 41% very satisfied 32% somewhat satisfied 9% not satisfied 4

5 But Money Still Matters Compensation is a nagging issue for many 45% have considered leaving the sector for better compensation (Females more likely to have considered leaving sector) Satisfaction with Specific Job Attributes Extremely or Very Satisfied Satisfied Not Too or Not At All Satisfied In your current job, how satisfied are you with your? Work environment 63% 27% 9% Employee benefits Work/life balance Professional development Opportunities for advancement Salary

6 What About Retirement? Retirement Confidence How confident are you that? You will be able to retire when you want You will have sufficient income to live comfortably during your retirement Your financial resources will last throughout your retirement Extremely or Very Confident Confident Not Too or Not at All Confident 14% 35% 51%

7 A Lack of Retirement Confidence But why the lack of confidence when? 76% have access to an employer-sponsored retirement plan o 30% to a traditional pension o 69% to a defined contribution plan 76% are currently saving for retirement o 24% of those not currently saving have saving set aside for retirement 7

8 Saving and Investing Retirement Preparation Confidence How confident are you that you? Are saving the right amount for retirement Are investing your retirement savings appropriately Have enough knowledge to choose the best way to convert savings to income during retirement (age 50+) Extremely or Very Confident Confident Not Too or Not at All Confident 18% 39% 43%

9 A Lack of Resources? Satisfaction with Specific Job Attributes Extremely or Very Satisfied Satisfied In your current job, how satisfied are you with your? Ability to prepare financially for retirement Ability to prepare for other financial goals Not Too or Not At All Satisfied 22% 33% 45% Employee benefits Salary

10 Or Something Else? Household debt burden 20% view their debt level as a major problem o 38% as a minor problem o 42% not a problem Debt and Saving How confident are you that you are saving the right amount for retirement? Percentage Saving 100% 80% 60% 40% 20% 0% 84% 74% 63% No Debt Problem Minor Debt Problem Major Debt Problem No debt problem Minor debt problem Major debt problem Extremely or Very Confident Confident Not Too or Not At All Confident 26% 43% 31%

11 Or a Lack of Knowledge? A lack of knowledge 63% have not tried to determine how much they need to save for retirement (Females less likely to have tried) o Among retirement savers 57% have not 37% don t know how much income they need to replace in retirement (Females more likely not to know) o Plus, 31% think it is less than 70% 68% have not received retirement planning advice within the past three years o 42% of those receiving advice followed some or none of the advice 11