Data and Research

Family Resources Expected to Be a Big Part of Retirement Income

A survey also found U.S. investors rank long-term care and health care costs as their biggest threat to financial security in retirement.

By Rebecca Moore editors@plansponsor.com | June 06, 2017
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Seventy-eight percent of investors overall feel that funding retirement is increasingly their responsibility, not the government’s, according to the Natixis Global Asset Management 2017 Individual Investor Survey.

One-third of investors overall believe government benefits will be unavailable when they retire. This breaks down to 41% for Millennials, 33% for Generation X and 22% for Baby Boomers.

Interestingly, the younger age cohorts expect to retire early, even though they are most likely to live longer. Millennials say they plan to retire at age 59, Gen X at 58 and Baby Boomers at 65.

A full 98% of investors believe personal savings will be their most important source of retirement income. Eighty-one percent rank public pensions or Social Security benefits as an important retirement income source.

Family resources are expected to be a big part of retirement income—77% for investors overall and 81% for investors with children. The family resource most likely to contribute to retirement income is a spouse’s retirement savings (77%). More than four in 10 investors (43%) expect to rely on an inheritance, and 38% say contributions from children will be a source of retirement income. More Millennials (62%) expect to receive an inheritance than Gen Xers (42%) or Baby Boomers (31%).

NEXT: Obstacles to retirement security, and retirement preparations

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