Overall confidence in retirement, which previously was on an upward trend, “flatlined” in 2019.
And when it comes to the critical task of turning savings into retirement income, six in 10 workers are worried, up 14 percentage points from last year, according to BlackRock’s latest DC Pulse Survey.
At the same time, workers’ confidence in their progress stayed relatively flat after several years of growth.
Indeed, 60% say they are on track to retire with the lifestyle they want, compared with 61%, 56%, and 52% in the three previous years.
“Workers continue to feel challenged on how best to achieve a financially secure retirement,” Anne Ackerley, head of U.S. and Canada Defined Contribution at BlackRock, said in a statement. “It’s one of the toughest financial hurdles facing workers today—how to take hard-earned savings and create lasting income through retirement. Even when workers are largely upbeat over their current financial situation, the thought of a secure retirement weighs heavily”.
Women More Worried—and Pragmatic—About Retirement Prospects
According to the survey, women, in general, are more concerned about their retirement: Just 50% feel they are on track, compared with 69% of men.
Yet a growing set of evidence suggests that women may also be more pragmatic in taking steps to alleviate their concerns.
For example, about seven in 10 women say it would be helpful if their employer “automatically reallocates their assets to more appropriate investments for someone their age,” leaving the complicated task of allocating assets to investment professionals to maintain the plans best thinking.
Their pragmatism also extends to retirement income: 45% of women say retirement income is extremely important when selecting a retirement investment, as opposed to only 38% of men.
In addition, women are less likely to leave their plan after retirement, which has shown to have many benefits such as competitive fees and fiduciary oversight of investments.
“Women are more likely to welcome guidance from their employer, take advantage of staying in their plan after retirement, and have a healthy respect for the difficult task of saving and investing for the future,” Ackerley said. “This is equal parts about providing tools and empowering women with the right resources and breaking down outdated narratives around women and investing.”
Survey results also show that women are less likely than men to agree that their employer’s communications “help me understand the benefits of my plan” and “help me decide how to manage my plan’s retirement savings,” suggesting that existing communications do not reflect women’s concerns, needs and interests.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
