Table of Contents
Executive Summary
-
- The issues
- People are not saving enough for retirement
-
- Figure 1: Amount in retirement savings, by household income, January 2015
-
- Figure 2: Amount in retirement savings, by generation, January 2015
- Women have saved less than men
-
- Figure 3: Amount in retirement account, by gender and age, January 2015
- Lack of retirement planning education
-
- Figure 4: Concerns about retirement saving, January 2015
- The opportunities
- Increasing number of single people
-
- Figure 5: Ownership of retirement account, by marital status, January 2015
- Advisers can step in
-
- Figure 6: Steps taken toward retirement planning, by generation, January 2015
- What it means
The Market – What You Need to Know
-
- Retirement assets are at a record high
- IRAs are the largest segment of the market
- The number of people with a retirement plan is growing
- Workers and retirees are more confident
Market Size
-
- Retirement plan assets reach $24.7 trillion
-
- Figure 7: Total US retirement plan assets, 2007-14
Market Breakdown
-
- IRAs comprise largest segment
-
- Figure 8: US retirement plan assets, by segment, 2012-Q4 2014
- IRA assets
-
- Figure 9: IRA assets, selected years 1995-2013
- 401(k)s are growing in importance
-
- Figure 10: Defined Contribution Plan Assets, by type of plan, selected years, 1995-2013
Market Perspective
-
- 401(k) balances are up
- Worker confidence is inching back
-
- Figure 11: Worker confidence in having enough money to have a comfortable retirement, selected years
- Retirees are also more confident
-
- Figure 12: Retiree confidence in having enough money to have a comfortable retirement, selected years
Market Factors
-
- Life expectancy
-
- Figure 13: US life expectancy, for infants born in 1980-2012
- Consumer savings
-
- Figure 14: US personal saving rate, February 2005-February 2015
- Unemployment rate
-
- Figure 15: US unemployment rate, January 2012-March 2015
- Access to employer-sponsored plan(s)
-
- Figure 16: Percentage of US workers who have access to and participate in an employment-based retirement plan, 1987-2013
Key Players – What You Need to Know
-
- Fidelity is the leader
- More employee education is needed
- Automatic enrollment and escalation aid tremendously
- The government is getting involved
What’s Working?
-
- Fidelity is a leader in workplace education
-
- Figure 17: Fidelity workplace education ads, 2015
- Employers are increasing their assistance
-
- Figure 18: Principal direct mail ad, 2015
- Automatic enrollment/automatic escalation
Who’s Struggling?
-
- More retirement planning education is needed
-
- Figure 19: Concerns about retirement savings, by gender, generation, January 2015
What’s Next?
-
- myRAs
- New regulations may come
The Consumer – What You Need to Know
-
- Most people have a retirement account, but some segments are behind
- Women lag men in retirement preparedness
- Education and engagement are key
Retirement Plan Ownership
-
- Most consumers have some type of retirement plan
-
- Figure 20: Retirement plan ownership, any retirement plan, January 2015
- Only half of single people have a plan
-
- Figure 21: Retirement plan ownership, any retirement plan, by marital status, January 2015
- Plan participation is low among Hispanics and Blacks
-
- Figure 22: Retirement plan ownership, any retirement plan, by race and Hispanic origin, January 2015
How Much Do They Have?
-
- How much they have
-
- Figure 23: Amount in retirement savings, January 2015
- Women are behind
-
- Figure 24: Amount in retirement account, by gender, January 2015
- Geographical region matters
-
- Figure 25: Amount in retirement account, by region, January 2015
Retirement Planning Steps Taken
-
- Retirement planning steps already taken
-
- Figure 26: Steps taken toward retirement planning, January 2015
- Men are more likely to do own research
-
- Figure 27: Steps taken toward retirement planning, by gender, January 2015
- Consumers look for adviser at $250K
-
- Figure 28: Steps taken toward retirement planning, by amount in retirement account, January 2015
Why No Adviser
-
- Young women are not focused on retirement
-
- Figure 29: Reason for not using a financial adviser, by gender and age, January 2015
- Household income helps determine timing for advice
-
- Figure 30: Reasons for not using a financial adviser, by household income, January 2015
-
- Figure 31: Wells Fargo retirement advice direct mail ad, 2015
Reasons for Not Starting to Plan
-
-
- Figure 32: Reasons for not starting to plan, January 2015
-
Attitudes toward Retirement
-
- Few are confident, yet few are prepared
-
- Figure 33: Attitude toward saving for retirement, January 2015
- Millennial men are taking steps; Millennial women are not
-
- Figure 34: Attitude toward saving for retirement, by gender and age, January 2015
Retirement Saving and Investing Behavior
-
-
- Figure 35: Retirement saving and investing behavior, January 2015
- Few actively manage their retirement accounts
-
- Figure 36: Retirement saving and investing behavior, by household income, January 2015
- Consumers with large retirement accounts behave differently
-
- Figure 37: Retirement saving and investing behavior, by amount in household’s retirement account(s), January 2015
-
Retirement Saving Concerns
-
- Most don’t understand their plan
-
- Figure 38: Top five concerns about retirement saving, by level of agreement, January 2015
- Many young people would welcome help
-
- Figure 39: Concerns about retirement savings, by generation, any agree, January 2015
CHAID Analysis
-
- Opportunities for advisers
- Hispanic Millennials
-
- Figure 40: Concerns about retirement saving – CHAID – Tree output, January 2015
- Non-Hispanic Male Millennials
-
- Figure 41: Concerns about retirement saving – CHAID – Tree output, January 2015
Appendix – Data Sources and Abbreviations
-
- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – CHAID Analysis Methodology
-
-
- Figure 42: Concerns about retirement saving – CHAID – Table output January 2015
-
Back to top