401(k) Specialist Issue 3 - 2024 - 31

401(k) PRACTICE
" The typical
retirement
preparation often
happens too late and
is individualistic in
approach, meaning
planning and
decision-making
are thrust upon the
individual, rather
than an employer or
financial professional
providing support
early and often. "
- New York Life's Jessica Ruggles
* 71% of adults are looking for further
guidance or advice to feel prepared for
retirement-with Social Security (38%),
preparing for healthcare costs (30%), and
product knowledge (e.g., annuities, longterm
care insurance) (24%) being the top
areas of focus.
* Adults approaching retirement who work
with a financial professional are more
likely to say that they know how much
money they need to save to be comfortable
in retirement compared to those
who do not (76% vs. 55%).
* 63% of pre-retirees don't think their
401(k) and Social Security will be
enough to support them in retirement.
* While 61% of retirees saved more or
about the same as they thought they
would before retiring (more: 13%, about
the same: 48%), 39% of retirees saved less
than they thought they would.
* Retirees are less likely to say that they
have financial security during retirement
compared to pre-retirees' expectations
(24% vs. 30%).
Most of Gen X Unlikely to Retire
on Time
Rising longevity and declining financial
confidence of Gen Xers result in plans to
retire later or not at all. However, across all
income levels, 18% of the Gen X cohort
report having successfully retired.
" The potential for people to live longer
has implications for the workplace, retirement,
and health planning. Gen Xers, the
oldest of whom are now eligible to take
retirement withdrawals, are in a more financially
precarious position compared to other
segments, likely due to sacrifices to their
own financial security to provide care, which
strains all areas of wellbeing, " said Ruggles.
* 70% of Gen X pre-retirees think they
will retire later than expected or not at
all. Only a quarter of Gen X pre-retirees
believe they will retire on time.
* Despite approaching retirement age, only
46% of Gen Xers are actively planning
for retirement. Among those actively preparing,
growing their retirement savings
accounts (48%), reducing debt (47%),
and contributing to their investment
accounts (37%) are their top financial
priorities.
* 73% of Gen Xers who work with a financial
professional are confident that they
will save enough to live comfortably in
retirement, compared to 45% who don't.
* Gen X pre-retirees working with a
financial professional are more likely to
say that they know how much money
they need to save to be comfortable in
retirement, compared to those who don't
(71% vs. 50%).
" Our data shows that there are pathways
for building retirement confidence. Among
adults in this generation who are retired,
two-thirds reported saving the amount that
they wanted or more before retiring because
they had a financial strategy. Access to human
advice and personalized guidance remains
paramount in helping individuals prepare
for a more secure retirement without fear of
outliving their assets. "
71%
of adults are looking
for further guidance or
advice to feel prepared
for retirement.
63%
of pre-retirees don't
think their 401(k) and
Social Security will
be enough to support
them in retirement.
70%
of Gen X pre-retirees
think they will retire
later than expected or
not at all.
73%
of Gen Xers who
work with a financial
professional are
confident that they
will save enough to
live comfortably in
retirement.
ISSUE 3 2024 | 401kSpecialist.com
31
401(k) Specialist Issue 3 - 2024

Table of Contents for the Digital Edition of 401(k) Specialist Issue 3 - 2024
