Annual Retirement Survey
What retirees have to tell us about the new world of retirement.
Retirement is changing. It is too easy, however, to focus on the uncertainty about where we are today in the new world of retirement and ignore how far we have come in overcoming the challenges.
That's one of the reasons BlackRock extended this year's Retirement Survey to include recent retirees for the first time. We asked retirees about what helped them prepare for retirement and what might have helped them even more. Our four findings are presented here.
Despite the often bleak retirement landscape reported in the media, recent retirees are surprisingly confident.
Twice as many retirees than current participants are confident they will have enough money to live throughout retirement. Understanding what is driving the difference in perceptions can help point the way forward for DC plans.
According to responses, only a quarter of participants are very confident they will have enough money to live comfortably in retirement; compared to 54% of retirees who were confident they would be able to do the same.
When it comes to life in retirement, 47% of retirees work or volunteer because they enjoy it or like to stay engaged, with only 1% working because they need the income. When the same was asked of current participants, 70% said they will work for enjoyment while 15% said they will work for income.
This suggests that the definition of retirement is changing, with more people considering retirement a new phase of activity.
Plan sponsors agree with this emerging paradigm of life post-retirement, but it may be founded more on pessimism about the savings efforts of their employees. 76% plan sponsors agree the days of not working in retirement are gone for their participants, with 55% saying they are not confident their participants are saving enough.
For Plan Sponsors and DC Advisors
Retirement Survey Results
Thought leaders from the BlackRock DC team discuss findings from this year's survey.
Thoughts on the Survey
BlackRock Senior Managing Director
"In the new world of investing, how people prepare for retirement is dramatically different from the approach that workers for generations followed previously. As our Survey clearly demonstrates, many people in retirement today feel financially secure primarily because they have a secure income stream."
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