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.
One of the financial and psychological foundations of retiree confidence is traditional retirement income.
As traditional sources of secure retirement income decline, DC plans will be challenged to increase retirement confidence for participants.
Retirees in our Survey receive most of their retirement income from traditional sources such as pensions and Social Security, reporting that it covers 80% or more of their monthly expenses. The percentage drawing significant defined benefit (DB) pension income is probably higher than in the general population, but what is worth noting is not the numbers, but the connection between secure income and optimism about life in retirement. Simply put, secure income is tied to retirement confidence.
The attractiveness of in-plan income solutions is clear: 89% of participants agree they would like their plan sponsor to provide them with income generating options in their retirement savings plan, and 85% find the idea of a fund that automatically converts savings to guaranteed income in retirement appealing. The good news is that plan sponsors recognize the need for income solutions too: 79% believe it is their responsibility to provide a secure income generating option in their plan.
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
Head of BlackRock's US and Canada DC Group
"Though many of today's retirees are successfully meeting the financial challenges of life post-employment, the reality is that most are enjoying the financial benefit of robust, secure income streams—in particular, defined benefit pensions—that future retirees simply won't have."
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Financial professionals should check with their firm compliance before distributing any content on this site. This content is provided for your reference only unless otherwise documented.