What are the top retirement insights that consumers need to know?

October 30, 2024 12:00 PM

The Federal Reserve's September rate cut brought a tinge of optimism to the retirement landscape as inflation figures began to fall. But with younger generations of talent shifting from Social Security to personal retirement accounts, many are left wondering what sets apart a good plan from a bad one.

Goldman Sachs' 2024 Retirement Survey & Insights Report released last month found that out of 4,874 respondents polled, 36% said they were confident that their plan would allow them to achieve their retirement benchmarks when compared to the 10% without plans that felt the same.

"Those with a plan felt considerably better in terms of having more confidence in their ability to reach their goal," Christopher Ceder, senior retirement strategist in the Asset Management Division at Goldman Sachs, said during a webinar. "They're more comfortable managing their savings. … Those with the plan are increasing their savings more often than those without."

But not all savers are equal, as many faced significant hurdles to contribute to said plans.

Of the main challenges, 67% of respondents held that numerous financial expenses were the top obstacle. Financial hardships like emergency home repairs and familial support rounded out the top three at 61% and 57% respectively.

Read on for expert insight into how to structure retirement plans for the future, and what market factors to account for when doing so.

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The top 5 benefits, according to each generation

Article by

Lee Hafner

If employers are going to invest in new benefits, they should know which ones will best meet the needs of the different demographics in their workforce.

The Bureau of Labor and Statistics reports that the annual cost of benefits per employee is $23,696 in the private sector and $26,226 for civilian workers, and 78% of employees said benefits packages are a reason they are more likely to stay with an employer. Essentially, every benefit counts, so it's good to have a handle on what employees of different ages and life stages want.

"The workforce today comprises [multiple] generations, each with distinct experiences, yet within this generational framework lies a diverse range of individuals with unique needs and perspectives," says Kristina Welke, head of strategy, solutions and marketing for New York Life Group Benefit Solutions (NYL GBS). "By understanding these generational nuances and offering a flexible benefits package, employers can create a more engaging and supportive workplace for everyone."

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Skeptical on Social Security, younger workers shift to personal retirement accounts

Article by

Rob Burgess

Older generations still view Social Security as a viable source of retirement income. But younger workers aren't confident it will be there for them when they finish their careers.

According to research firm Cerulli Associates' latest U.S. Retirement Edition study, more than half (56%) of retired 401(k) participants say Social Security is their primary source of income, while only 7% of current retirees rely on personal retirement accounts as their primary source of income.

Meanwhile, 58% of millennial active 401(k) participants expect personal retirement accounts to be their primary post-career income source, while only 6% say Social Security.

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What industry saves the most for retirement?

Article by EBN Staff

The amount those saving for retirement can put aside for the future varies across industries based on factors including the type of company they work for (which influences employer contributions), as well as workforce demographics, which influences the amount a participant contributes, according to Vanguard.

Employees in the agriculture, mining and construction industries save the most, with an average of $185,511 and a median of $47,517 in retirement savings.

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Healthcare workers aren't confident they're saving enough to retire

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What's a good 401(k) employer match?

Article by EBN Staff

Some employees saving for retirement in 401(k) plans can have the added benefit of employer matching contributions to increase their overall savings. Most employers offer between 3.00% and 4.99% of their employee's pay as their match, according to data from Vanguard.

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Prevent retirement-saving regrets with these tips

Article by

Rob Burgess

Most Americans wish they had started saving for retirement sooner and that they hadn't withdrawn money early from retirement accounts, according to a recent study.

The report, conducted by Censuswide and commissioned by Human Interest, also indicated employers can help employees avoid retirement planning decisions they'll later regret. The research was conducted with 1,041 full-time, non-self-employed American workers between July 8 and 10.

The study found that 41% of Americans expect to retire later than planned due to recent financial circumstances and 83% plan to continue working after retirement.

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Healthcare workers aren't confident they're saving enough to retire

Article by

Deanna Cuadra

It's no secret that a majority of Americans do not feel they are on track to retire comfortably. Between credit card, medical and student loan debt, saving for retirement can feel like an uphill battle — one that full-time healthcare professionals cannot escape.

The TIAA Institute surveyed over 1,500 healthcare workers, from physicians, surgeons and nurses to office and administrative staff, about their retirement readiness. While 91% are saving for retirement, 34% aren't confident they're saving enough, and 28% aren't confident their savings are being invested effectively.

Notably, registered nurses are especially concerned, with only 14% stating they feel very confident that they will have an adequate retirement income.

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What makes a dream retirement? 6 advisers share their visions

Article by

Nathan Place

The ideal retirement looks different for everyone. Financial advisers know that's true of their clients — but it's also true of the advisers themselves.

"Oh my gosh, it's such a wide variety," said Tiffany Lee, an associate exit planner at Ellevate Advisors, a firm that helps wealth managers with their succession and retirement planning.

The fun part of Lee's job, she said, is helping her clients envision what they'll do after they leave the workforce. It's an important question, because many planners are quickly approaching that transition. The average age of an American financial adviser is 56, according to a 2023 study by J.D. Power. And according to the research firm Cerulli Associates, 37.5% of advisers plan to retire within the next decade.

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5 ways to support the retirement needs of all generations

Article by EBN Staff

Are your employees ready to retire?

Whether you're talking about Gen Z, millennials, Gen X or baby boomers, the answer to that question may unfortunately be: Not quite.

Just seven out of 10 Americans feel confident in their retirement preparedness, according to the Employee Benefit Research Institute's 2024 retirement confidence survey, conducted in partnership with Greenwald Research. Additionally, 23% of the current workforce expects to retire after the age of 70, or not at all.

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People want to live to 100. Can they afford to?

Article by

Alyssa Place

Employees are hoping to make the most of their time after leaving the workforce. Being able to fund decades without income is a different matter.

According to a survey by Corebridge Financial, 54% of individuals hope to live until 100. Yet long lives equate to a sizable amount of savings needed to sustain an individual's health, as well as their long-term living expenses. However, less than a quarter of people believe they have enough retirement savings to last as long as they need it, and 66% actually fear running out of money more than they fear dying.

"Living a long life should be a cause for celebration — not for anxiety and fear," says Terri Fiedler, president of retirement services at Corebridge Financial. "This is an area where employers can play an important role by providing education programs and resources that focus on total financial wellness leading up to and through retirement."

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Why this fintech isn't rushing retirees out the door

Article by

Frank Gargano

Collaboration was a core tenet of DCI's foundation more than 60 years ago, when four banks in Hutchinson, Kansas, came together to build a core processor for institutions of all asset sizes.

Those ideals remain important today. DCI has created a retention program for employees who want to scale back their hours but not retire completely.

The birth of the firm's part-time retiree program came about in early 2022, after a conversation between Janet Seiler, who was then a development manager for DCI, and her manager Sandra Schmitt first led to the prospect of helping employees ease their way into the next phase of their lives. Seiler was nearing retirement age but was interested in staying on at the company in some capacity.

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