COVID-19 puts college employees' retirement readiness to the test

March 24, 2021

The majority of higher-education institutions — 87% — expect the COVID-19 pandemic to have a significant adverse impact on employees' retirement readiness, according to a survey from Voya Financial.

More than 2 in 5 college and universities, or 41%, have already reduced or stopped employer matching contributions, with 53% looking to service providers to offer more help getting employees ready for retirement, the survey found.

More than half, or 51%, also want their providers to help employees improve overall financial wellness. Many plan sponsors, for example, reported plans to expand their financial wellness programs in the next 12 months, with 40% saying they will add assistance with debt management and advisory support through one-on-one counseling. More than a third plan to add online tools and calculators (38%) as well as assistance with planning for caregivers and employees with disabilities and special needs (35%).