While there is strong optimism concerning the equity markets and long-term growth, there is also a lack of specific planning on the key topics of income planning, Social Security optimization, health care costs and more.
An in-depth review of the results of the latest BlackRock Defined Contribution Pulse Survey show the largest plan sponsors continue to push for the most progressive best practices and plan designs.
The agency also offered suggestions for rollovers by participants in foreign retirement plans.
More plan sponsors this year than last have voiced a concern that their workers may have to delay retirement; this is the case despite the fact that plan participants are broadly feeling much more optimistic.
However, 45% said they do not know how to select a retirement income product, according to a survey by fixed income annuity provider Annexus.
The firm's study shows that when individuals view their projected monthly income in retirement, those who take action increase their savings rate by 8% (7.07% to 8.4%), on average.
However, there is confusion about how to get this additional income stream.
In addition, a survey finds, some Baby Boomers delayed retirement because they were facing significant health care costs.
However, a survey found 53% of employees would like their employers to offer tools to help them improve their financial situation.
More than one in three retirees actually see their assets grow, BlackRock and EBRI found.
However, research finds workers with a lower socioeconomic status have a harder time staying in the workforce.
Only half of retirees with debt are confident they will be able to live the lifestyle they want, but 70% of retirees without debt are confident.
Plan sponsors should be aware that many participants have assets invested with providers that do not serve their current plan, which has implications for measuring readiness.
Many mistakenly believe government programs will cover long-term care costs, which may be why a mere 20% have taken any steps to find LTC insurance.
But only 46% know that annuities offer it, Jackson National Life found in a study done for the Insured Retirement Institute.
The uncertainty over the fiduciary rule and increased participant litigation are prompting sponsors to move to lower-cost investment options.
“People are living longer than at any other time in history,” observes Catherine Collinson of Transamerica. “It’s hardly surprising that many workers envision working past age 65 and some do not plan to retire at all.”