More Americans (37%) spanning generations and demographics feel unprepared or unsure if they are on track for retirement compared to the previous three years, with more women than any other group (47%) reporting a lack of confidence, according to BlackRock’s seventh annual retirement survey, The BlackRock Read on Retirement. For the first time in several years, the data shows a notable decline in confidence amongst savers who are participating in a workplace retirement plan, down from peak levels (68%) during 2021. Among savers who did not have access to a workplace retirement plan, only 51% feel they are on track for retirement.
Inflation is a key driver for the decline in confidence, and nearly all (87%) workplace savers reported they are concerned about inflation impacting their retirement. These savers also report a decrease in spending on big ticket items (54%) and consumables (42%) as a result. Most of all respondents (64%) are also worried about their nest egg lasting throughout their lifetime – a data point that is even higher among Black/African American (75%), Asian/Pacific Islander (71%) and Hispanic/Latino respondents (67%). Likewise, a majority of plan sponsors (69%) reported they are worried about inflation wearing down their plan participants’ retirement savings, and nearly all employers and savers (90%) are interested in investment options that would provide guaranteed income in retirement.
Savings rates across workplace plan participants were a positive finding in the research. Across generations of Americans currently in the workforce, the most in modern history, youngest workplace savers (Gen Z) are demonstrating the strongest retirement savings discipline. The study found this group is setting aside an average of 14% of each paycheck, compared to 12% for other generations (Millennials, Gen X, and Boomers). However, one-third of Gen Z respondents believe they can retire comfortably with less than $250,000, compared to half of Baby Boomers who reported they would need $1 to $3 million to retire. In contrast, 17% of savers with no access to a workplace plan are not contributing anything at all to retirement, compared to just 1% of workplace savers with access to plans.
Anne Ackerley, Head of Retirement at BlackRock, said: “As we experience new market headwinds that could impact the retirement security of millions of Americans, it’s a critical time for our industry to ensure people are planning for retirement with confidence and clarity. While it’s encouraging to see double-digit savings rates across every generation, we have work to do to help more Americans reach retirement with dignity and on their own terms - particularly those without access to employer savings plans, and women and people of color.”
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About The BlackRock Read on Retirement
The BlackRock Read on Retirement, formerly known as the BlackRock DC Pulse Survey, provides insights from a research study of over 300 large defined contribution plan sponsors, 1,300 workplace retirement plan savers, 1,300 independent savers, and 300 retired workplace savers in the United States. The survey is executed by Escalent, an independent research company. All respondents were interviewed using an online survey conducted March 25 - April 30, 2022.
About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock
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Thomasin Bentley
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Kristen Rivera
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