Retirement & Funding
Ideas for Enhancing Advice as Income Sources Evolve and Target Dates Move Younger
Order Report - Retirement & Funding : Ideas for Enhancing Advice as Income Sources Evolve and Target Dates Move Younger
Report Overview
The past year has many investors rethinking their plans. This report explores changes in target retirement ages; aspirations and reality for income replacement rates and the importance of advice; anticipated sources of retirement income for those approaching retirement compared to actual sources for those already retired; and a profile of the "Aspire to Retire by 55" group.
Key Findings
- Even as more households want to “work full time as long as health permits,” target retirement dates are moving younger.
- Ambitions for replacement rates have increased, but assets-to-income ratios show most people are still very unprepared for the end of full-time work.
- Future retirees anticipate combining more sources of income than current retirees. The more income sources consumers have, the more value they see in paying for advice.
- More households report participating in an employer-sponsored retirement plan. More generous matches increase overall household saving rate, especially at lower income levels.
- There are about 11M households in the “Aspire to Retire by 55” design target. Well positioned in some ways, these households need help to achieve this goal.
How This Report is Helpful
This briefing will be especially helpful to people working on workplace advice, institutional retirement plans, IRA or rollover product management and financial planning.
Pricing
Choose access licenses for your team or organization in ways that support how you collaborate. AVAILABLE FOR LICENSE TO NON TRENDS SUBSCRIBERS MARCH 17, 2021
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Online only (1-20 log-ins) - $6,000
Sample Report Pages
This new 76-page report features 50 data-intensive exhibits.
Table of Contents
Executive Summary
Methodology
2-3
Key Findings and Implications, Favorite Statistics, Related Research
7-13
Key Finding #1: Even as more households want to "work full time as long as health permits," target retirement dates are moving younger.
Exhibit 1.1 — Vision for Work-Life Balance as Older Adult: National, by Year
14
Exhibit 1.2 — Crosstab of Vision for Work-Life Balance as Older Adult by: Anticipated Retirement Age – Breadwinner: 2020
15
Exhibit 1.3 — Lifestage Composition Within Breadwinner Age Groups: 2020
16
Exhibit 1.4 — Age Group Composition of Pre-Retiree Breadwinners: by Year
17
Exhibit 1.5 — Anticipated Retirement Age: by Year
18
Exhibit 1.6 — Lifestage Composition Within Breadwinner Age Groups 45-54 and 55-64: by Year
19
Exhibit 1.7 — Anticipated vs. Actual Age of Breadwinner Retirement: by Year
20
Exhibit 1.8 — Work Viability Reported by Post-Retirees vs. Anticipated Work Viability of Not Yet Retired Households: 2020
21
Exhibit 1.9 — Anticipated Retirement Age of Breadwinner by: Anticipated Work Viability: 2020
22
Key Finding #2: Ambitions for replacement rates have increased, but assets-to-income ratios show most people are still very unprepared for the end of full-time work.
Exhibit 2.1 — Anticipated Income Replacement Rate: by Year
23
Exhibit 2.2 — Anticipated vs. Actual Income Replacement Rate: by Investable Assets, 2020
24
Exhibit 2.3 — Assets-to-Income Ratio: by Lifestage, 2020
25
Exhibit 2.4 — Assets-to-Target/Actual Retirement Income Ratio: by Lifestage, 2020
26
Exhibit 2.5 — Actual Income Replacement Rate by Reported Work Viability Segmentation: Post-Retirees, 2020
27
Exhibit 2.6 — Assets-to-Target/Actual Retirement Income Ratio by Reported Work Viability Segmentation: Post-Retirees, 2020
28
Exhibit 2.7 — Crosstab of Assets-to-Income Ratio by Feelings About Financial Security: Non-Pensioner Post-Retirees With $100K+, 2020
29
Exhibit 2.8 — Assets-to-Target/Actual Retirement Income Ratio by Store: 2020
30
Key Finding #3: Future retirees anticipate combining more sources of income than current retirees. The more income sources consumers have, the more value they see in paying for advice.
Exhibit 3.1 — Count of Actual Sources of Income in Retirement: by Year
31
Exhibit 3.2 — Average Count of Actual Sources of Income in Retirement: by Investable Assets, by Year
32
Exhibit 3.3 — Count of Actual Sources of Income in Retirement: By Investable Assets, by Year
33
Exhibit 3.4 — Count of Actual Sources of Income in Retirement by Store: 2020
34
Exhibit 3.5 — Actual Sources of Income - Incidence of Each Source: Post-Retirees, by Year
35
Exhibit 3.6 — Actual Sources of Income in Retirement - Employment Income: Post-Retirees, by Year
36
Exhibit 3.7 — Actual Sources of Income in Retirement - Real Estate Income: Post-Retirees, by Year
37
Exhibit 3.8 — Count of Anticipated Sources of Income in Retirement: by Year
38
Exhibit 3.9 — Average Count of Anticipated Sources of Income in Retirement: by Investable Assets, by Year
39
Exhibit 3.10 — Anticipated Sources of Income in Retirement - Incidence of Each Source: by Year
40
Exhibit 3.11 — Anticipated vs. Anticipated Sources of Income in Retirement: by Year
41
Exhibit 3.12 — Anticipated vs. Actual Sources of Income in Retirement: Components of Income From Investable Assets, by Year
42
Exhibit 3.13 — Anticipated Sources of Income In Retirement - Average Percent of Income From Withdrawals From Taxable Accounts: by Year
43
Exhibit 3.14 — Crosstab of Count of Anticipated Sources of Income in Retirement by Attitude "I see value in paying for professional financial advice, whether or not I use a financial advisor today," 2020
44
Key Finding #4: More households report participating in an employer-sponsored retirement plan. More generous matches increase overall household saving rate, especially at lower income levels.
Exhibit 4.1 — ESRP Eligibility & Participation in Household: by Year
45
Exhibit 4.2 — Crosstab of Vision for Work-Life Balance as Older Adult by ESRP Eligibility & Participation: 2020
46
Exhibit 4.3 — Annual Saving Allocation for Account Type ESRPs: 2020 vs. 2019
47
Exhibit 4.4 — Compare All ESRP Reasons for Participating by Levels of Importance on 10-Point Scale, 2020
48
Exhibit 4.5 — Compare All ESRP Reasons for Participating: 9-10 Importance on 10-Point Scale, by Race, 2020
49
Exhibit 4.6 — Compare All ESRP Reasons for Participating: 9-10 Importance on 10-Point Scale, by Annual Household Income, 2020
50
Exhibit 4.7 — ESRP Reasons for Participating: To Benefit From Tax Deferral, 9-10 Importance on 10-Point Scale, by Income and Generation, 2020
51
Exhibit 4.8 — ESRP Reasons for Participating: Ease of Payroll Deduction, 9-10 Importance on 10-Point Scale, by Education Level, 2014 & 2020
52
Exhibit 4.9 — Crosstab of ESRP Company Match by Annual Household Saving Rate: 2020
53
Exhibit 4.10 — Crosstab of ESRP Company Match By Annual Savings Allocation for Account Type: ESRPs, 2020
54
Exhibit 4.11 — Crosstab of ESRP Company Match by Annual Household Saving Rate: by Annual Income, 2020
55
Key Finding #5: There are about 11M households in the "Aspire to Retire by 55" design target. Well positioned in some ways, these households need help to achieve this goal.
Exhibit 5.1 — Sizing of Households With Breadwinners Age <55 by Target Retirement Age: 2020
56
Exhibit 5.2 — Profiling Households With Breadwinner Age <55: All vs. Aspire to Retire by 55, 2020
57
Exhibit 5.3 — Student Loan Debt Statistics: Households With Breadwinners Age <55 by Anticipated Retirement Age, 2020
58
Exhibit 5.4 — Percent of Spending on Housing & Utilities: Households With Breadwinners Age <55 by Anticipated Retirement Age, 2020
59
Exhibit 5.5 — Select Wants & Attitudes Among Households With Breadwinner Age <55: All vs. Aspire to Retire by 55, 2020
60
Exhibit 5.6 — Investment Product Ownership - Incidence of Owning Each Product: Households With Breadwinner Age <55: All vs. Aspire to Retire by 55, 2020
61
Exhibit 5.7 — Investable Assets: Households With Breadwinner Age <55 by Anticipated Retirement Age: 2020
62
Exhibit 5.8 — Annual Household Saving Rate: Households With Breadwinner Age <55 by Anticipated Retirement Age: 2020
63
Exhibit 5.9 — Assets-to-Income Ratio: Households With Breadwinner Age <55 by Anticipated Retirement Age: 2020
64
Exhibit 5.10 — Peak Accumulator Behaviors Among Households With Breadwinner Age <55: All vs. Aspire to Retire by 55, 2020
65
Exhibit 5.11— Financial Responses To COVID-19 - "Have Taken This Action" Among Households With Breadwinner Age <55: All vs. Aspire to Retire by 55, 2020
66
Exhibit 5.12 – Reach into Aspire to Retire by 55: 2020
67
Exhibit 5.13 – Composition of Customer Base by Anticipated Retirement Age Segmentation: 2020
68
Appendix
Data Dictionary
69-73
Glossary, Sample Sizes
74-76
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