Key findings from a joint study by the TIAA-CREF Institute and Independent Sector
According to the study - Financial Security and Careers in the Nonprofit and Philanthropic Sector - about 45 percent of all employees in the sector are not confident with their ability to prepare financially for retirement.
The study concludes that the nonprofit and philanthropic sector needs to address long-term financial security, create more opportunities for advancement within the sector, and look to national, cross-sector solutions.
The Financial Security and Careers in the Nonprofit and Philanthropic Sector survey polled 1,000 full-time employees (age 21 and older) in the nonprofit and philanthropic sector on their motivations and satisfaction in the workplace, including their plans, preparation, and readiness for retirement. The nonprofit sector consists of 1.6 million organizations, including charities, foundations and professional associations. It employs approximately 10 percent of the U.S. workforce.
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Key Survey Findings
Satisfaction and career advancement
- A majority (59%) of nonprofit employees are very or extremely satisfied with their current employment. Personal satisfaction with the mission of their work is an important driver in these employees’ career decisions, with more than 90% saying it is a strong consideration.
- Nonprofit employees also deem salary and career advancement important. Sixty-seven percent of women and 47% of men reported salary as a strong consideration. Satisfaction with career advancement opportunities varies with career stage, but overall only 30% are very or extremely satisfied and 36% are somewhat satisfied.
- Almost one-half of employees have considered leaving the sector for better compensation elsewhere.
- Forty-two percent of employees feel they are not accumulating sufficient financial resources to ensure their long-term financial security.
- Most employees are covered by a retirement plan at work: 30% have access to a defined benefit plan and 69% have access to a defined contribution plan. More than three-quarters of those with access to a defined contribution plan make contributions.
- However, 45% of sector employees are not satisfied with their ability to prepare financially for retirement.
- Household debt is likely a factor contributing to a lack of confidence regarding saving for retirement; 70% of early-career stage employees and 60% of mid-career employees consider their level of household debt to be a problem.
Behind the uncertainty
- One-third of sector employees have received retirement planning advice within the past three years.
- Two-thirds have not tried to determine how much money they will need to accumulate so that they can live comfortably in retirement.
- Among savers who are confident that they are saving the right amount, one-third have not attempted such a calculation.
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