Prudential’s Sixth Annual Workplace Report on Retirement Planning found that half (51%) of American workers feel they are “behind schedule” in their retirement savings goals.
Older workers feel even more behind, as 66% of 55- to 64-year-olds said they are lagging with their savings. Two-thirds (65%) of respondents
older than 45 believe that they might need to work longer and retire later than
expected in order to afford retirement.
Younger workers (age 21 to 45)
are slightly more optimistic, with four in 10 feeling they are behind on their
retirement savings goals, according to the survey.
Many polled workers
still seem hopeful about retirement, although it might come later than planned.
While only a slim number of respondents (19%) are “very confident” in their
ability to retire comfortably, most are at least somewhat confident (66%).
However, more than a third (34%) are not confident in their ability to retire
comfortably—and almost half (43%) of those ages 45 to 54.
to Auto Features
Prudential found that workers are receptive to
putting automatic features in retirement plans. “Today’s workers recognize the
critical role played by their employment-based retirement plan and are keenly
aware that the existing ‘do-it-yourself’ approach simply isn’t the best way to
build or achieve retirement security,” said Christine Marcks, president of
Prudential Retirement, in a press release about the results. “Importantly, workers seem
comfortable giving up a level of ‘control’ if it might mean the potential for
better outcomes over the long-term.”
Almost three-fourths (74%) are
positive about automatic enrollment, according to the survey. Similarly 70% are
positive about a default savings rate, and 65% are positive about automatic
Polled workers also overwhelmingly favor
automatic asset allocation. Overall, close to six in 10 respondents would prefer
an automatic approach to asset allocation in their workplace retirement plan,
rather than trying to manage their investments themselves.
More than half (59%) of the younger cohort is positive about automatic asset
allocation (another 31% are open to the idea). Among older workers, 57% are
positive and 28% are open to the idea.
Furthermore, Americans are
receptive to automated retirement income solutions. Of
the surveyed younger workers, 71% are positive about an automatic retirement
income approach, while 64% of older workers are positive.
polled 1,010 American employees in an online survey during October. The
participants are a national random sample of heads of households selected from
panelists in the TNS Online Access Panel. Respondents were age 21 to 64 and
employed full-time for an employer offering a 401(k), 403(b), or 457
defined contribution retirement savings plan.