BlackRock's 2013 Retirement Survey
Building Engagement: The Power of Listening.
Shaping the future of retirement begins with listening. That's why every year BlackRock surveys plan sponsors and participants about their beliefs, attitudes and concerns. The 2013 survey points to three areas of opportunity for tapping the full potential of DC plans, clarifying key retirement concerns and driving better savings behavior. The survey also suggests clear action steps that build on the great work plan sponsors have already been doing.
Participants like automatic features and management.
Participants who invest in target date funds are twice as engaged in their plans as those participants who do not invest in such funds.
Participants like the idea of target date funds (TDFs), particularly the clarity, simplicity and automation of TDFs features, 75% are not invested in TDFs, out of which two thirds aren't sure if their plan offers one or just don't know. Considering that 82% of plan sponsors say they offer TDFs, there is clearly a disconnect here.
The challenge is that although there seems to be agreement that TDFs are a good thing, many plan sponsors assume that their participants will react negatively to automatic or unilateral actions, such as a reenrollment. In fact, 94% of plan sponsors who have done a reenrollment report that the response was favorable.
Participants clearly assume that plan sponsor actions are made for their benefit by someone with greater understanding of the issues involved. Therefore, plan sponsors should not be as hesitant about reenrolling participants in a TDF.
Investing for Retirement
As a plan sponsor, be confident about "doing the right thing" for participants, whether that is auto enrollment, auto escalation or even full reenrollment into a target date fund. Doing so can have a positive impact on helping participants create better retirements.
Building Engagement: The Power of Listening
Chip Castille, Head of BlackRock DC and Warren Cormier, President of Boston Research Group discuss results from the 2013 Retirement Survey.
Learn More About the Survey
Read the full report for more on how to tap the full potential of DC plans.
Meet CoRI Now.
2012 Retirement Survey
Last year's survey reveals insights on the new world of retirement.
The opinions expressed may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by BlackRock, Inc. and/or its subsidiaries (together, "BlackRock") to be reliable. No representation is made that this information is accurate or complete. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.
This material does not constitute a recommendation by BlackRock, or an offer to sell, or a solicitation of any offer to buy or sell any securities, product or service. The information is not intended to provide investment advice. BlackRock does not guarantee the suitability or potential value of any particular investment.
Investing involves risk, including possible loss of principal.
The CoRI tool does not guarantee future income or protect against loss of principal. There can be no assurance that an investment strategy based on the CoRI tool will be successful.
©2013 BlackRock, Inc. All Rights Reserved. BLACKROCK and CoRI are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries. All other trademarks are those of their respective owners.
Prepared by BlackRock Investments, LLC, member FINRA.
For use with institutional and professional investors only – proprietary and confidential