Lifetime-Income Lessons from Retirees Can Move the Needle for DC Plans

The survey of retirees aged 54 to 75 reveals that while many are faring well post-retirement, there are key insights for current plan participants and sponsors. A significant portion of retirees reported stable or improved living standards, yet many expressed that they could have saved more during their working years. This highlights the importance of saving adequately to ensure a comfortable retirement.

The survey underscores the declining availability of pensions, with only 15% of private-sector employees having access to defined benefit plans. This trend places greater emphasis on personal savings and investment strategies to fill the income gap that pensions once covered. Retirees also expressed concerns about inflation, having enough savings, and managing withdrawals without depleting their resources, indicating a strong demand for guaranteed lifetime income solutions.

Interestingly, 65% of retirees would have opted for a guaranteed monthly retirement check if offered by their employers, reflecting the desire for financial security and predictability. Retirees also value flexibility and control over their retirement assets, with many preferring to decide the timing and amount of their income stream.

The insights suggest that plan sponsors should focus on providing options that offer both guaranteed income and flexibility. As participants prepare for retirement, these factors will be crucial in addressing their financial concerns and ensuring a secure retirement. The findings emphasize the need for proactive planning and education to boost confidence among future retirees.