If one adds annual spending figures, in today’s dollars, if you’re “average,” one can expect costs to be $414,000 over a lifetime.
Their primary reasons are financial and to fight boredom
In the DC retirement plan industry, it is simply taken for granted that everyone should be saving more and that everyone should save as much as they possibly can; commentator Andrew Biggs offers some important caveats to the seemingly sensible recommendation.
Asked about the major reasons they want to work beyond the traditional retirement age, Americans point to both wants and needs. The most common response is that people want to stay active and involved, or that they simply enjoy working; a fifth say they expect to need to work.
As skilled Baby Boomer employees begin to reach the traditional retirement age, employers need to examine their policies and procedures to address the potential loss of talented and experienced workers.
New DCIIA research put together in concert with a large group of retirement industry service providers highlights the crucial role plan design plays in terms of participants' decumulation decisions.
One clear point of concern in the data is the increasing number of Americans who anticipate retiring at 70 years or older than in the “traditional 65 to 69 range.”
BlackRock Managing Director Anne Ackerley, in conversation with PLANSPONSOR, explains new opportunities to deliver retirement income solutions to plan participants, including through the QDIA.
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.