May 10, 2012 (PLANSPONSOR.com) - Plan participants and retirement professionals can learn from the experiences of current retirees.
More than 90% of participants polled in BlackRock’s fourth annual retirement survey agreed they have something to learn from retirees (the majority of those polled were ages 60 to 69) about the choices they made in planning for retirement.
“'Successful’ retirees saved the maximum amount of money permitted by their respective 401(k) plans, they estimated their retirement income and planned for future income needs,” Chip Castille, managing director and head of BlackRock’s U.S. & Canada Defined Contribution Group, told PLANSPONSOR. “Participants should look at how these retirees were engaged with their 401(k) plan and how they made the most of it.”
The “lessons learned” by retirees include four main retirement planning regrets: not making the most of the 401(k) plan (13% of retirees reported doing so, and of those, 87% expressed regret); not enrolling in a retirement plan early enough (23% of retirees reported doing so, and of those, 90% expressed regret); not making a financial plan for saving for retirement early enough in their working life (27% of retirees reported doing so, and of those, 85% expressed regret); and not saving the maximum amount of money (27% of retirees reported doing so, and of those, 78% expressed regret).
According to the survey, 75% of retirees said they saved the maximum amount of money permitted by their 401(k) plan, versus 42% of participants who said they are saving the maximum.