The overwhelming majority of consumers want their retirement benefit statements to provide an estimate of lifetime income, according to a report released Tuesday from the Insured Retirement Institute.
Ninety percent of plan participants said they want their 401(k) statements to include these estimates, which are designed to help workers understand how much lifetime income could be generated from their retirement plans.
These estimates would lead to improved savings, said the IRI.
“More than 75 percent of the plan participants who took part in this study said they would increase their contributions after seeing their retirement income estimates,” said Cathy Weatherford, IRI president and CEO. “These respondents would increase their contribution level by four percentage points or more.”
In addition, more than 90 percent of respondents want their employers to provide online retirement income calculators so they can select their own assumptions to calculate estimates of lifetime retirement income.