And about a quarter of them told the survey they “don’t think they’ll ever be able to retire.”
The problem with all the age groups, Ogorek says, is that retirement planning can be very difficult.
“There are some factors you can control, such as saving more and spending less, but there are some factors you can’t control, such as losing a job or whether a loved one has a health issue,” he says.
Goodsell agrees and says there are many variables that can ruin a plan, such as higher costs, including higher-than-expected inflation rates, or lower-than-expected rates of returns on investment.
An example of the latter would be if your client retired in conditions similar to the stagflation of the 1970s. That was a decade of poor equity returns and periods of double-digit inflation.
These unpredictable factors, Goodsell argues, mean retirement planning should always be biased on the side of bigger-than-needed retirement assets.
“It is a lot less painful,” he says, “to overestimate what you need than to underestimate it.”
Some Highlights of the Natixis Retirement Savings Study
- 64 percent of American workers who participate in a company-sponsored defined contribution plan say they need more education from their employers on their workplace retirement savings plan.
- Fewer than one in five workers (14 percent) know the exact amount of the employee 401(k) contribution limit for 2019.
- While Americans age 50 and older have an opportunity to contribute to a 401(k) plan above the standard contribution limit, nearly two-thirds (64 percent) of those who are eligible are not making these catch-up contributions.
- 76 percent of American workers say they would be more inclined to save if they could invest in a company-sponsored defined contribution plan on day one of employment.
- 53 percent of American workers believe it is the government’s responsibility to provide universal access to a retirement savings plan.