Seventy-five percent believe their 401(k) plan is in better shape now than ever before, according to Charles Schwab.
Data & Research
A detailed analysis prepared by Aon suggests the typical worker would have to start saving at age 25 and put away 16% of pay annually—including the employer retirement plan match—to achieve a stable retirement outlook by age 67.
However, only 33% are confident about their retirement readiness.
Nearly three-quarters (72%) of respondents to a TD Ameritrade survey indicated they do not believe Social Security will cover their spending in retirement, and 51% said they do not believe they’ll have more than enough money to cover their needs in retirement.
The 2018 Retirement in America Survey from First National Bank of Omaha found 69% of people not yet retired have not calculated how much money they will need for retirement, while debt is plaguing retirees.
The Spectrem study found 59% of investors said their adviser understands Social Security benefits, while 47% said their adviser is knowledgeable about Medicare.
They are also not interested in robo advisers, preferring to work with financial professionals in person.
HealthView Services' Retirement Healthcare Cost Index shows a healthy 66-year-old couple retiring today will need 48% of their lifetime Social Security benefits to address total lifetime health care expenses; a 55-year-old healthy couple will need 57% of their benefits to cover health care costs, and a 45-year-old couple 63%.
Only 31% of those between the ages of 22 and 35 are saving for retirement.
Gen Xers are in a much better financial place, with many having paid down their student loans. This is enabling them to focus on retirement savings.
Twenty-one percent of workers expect that working in retirement will provide them with a major source of income, but this is only true for 9% of retirees.
When it comes to trusting a financial services firm, consumers first want it to secure their personal information; secondly, they expect it to deliver high-quality customer service.
They are worried about longevity risk.
Their use of an adviser acting as a plan fiduciary has increased by 40% in the past four years, according to the Plan Sponsor Council of America.
A report from Healthy Capital suggests a combination of managing health conditions and purchasing staggered annuities can help fund health care expenses in retirement, but concedes that the right strategy depends on the situation.
A survey by OneAmerica indicates roadblocks in affording financial adviser services.
LIMRA SRI found participants who were given an estimate of how their retirement plan account balance would translate to monthly income in retirement took more positive actions and were more confidence in their retirement security.
Saving more and reducing financial stress are the top reasons employees would participate.
If combined with the Automatic Retirement Plan Act of 2017, the retirement savings shortfall would be reduced by $932 billion, or 22.6%, according to EBRI.
Eighty-four percent of intermediaries expect sales of financial wellness programs will expand in the next three to five years, Prudential found.