By Pension and Benefits Editorial Staff
The Employee Benefit Research Institute’s Retirement Security Research Center (RSRC) has released a paper offering key take-aways for employers, providers, and policymakers considering how to advance the most successful outcomes for a variety of types of retirees.
“A View from the Partners: Practical Takeaways on EBRI’s Retiree Profile Research” examines EBRI’s recent “Spending in Retirement Survey”, which divided respondents into distinct profiles based on their self-reported financial status and spending behavior. These include Average Retirees, Comfortable Retirees, Affluent Retirees, Struggling Retirees and Just-Getting-By Retirees. Issues faced by the various cohorts included overwhelming debt, reluctance of spend down their retirement nest-egg, limited access to financial advisors, and potentially reduced sources of guaranteed income for future retirees.
The RSRC partners offered recommendations on ways to augment/replace pension-type income, help workers enter retirement with low debt, facilitate a clear spend-down strategy, and make more-widely available advisory-type services. As more retirees are likely to have to rely on personal savings through employer-sponsored plans in retirement, developing programs that implement these recommendations will be of growing importance to Americans trying to navigate a secure retirement.
“It is clear that one size does not fit all when it comes to meeting the needs of individuals who are on different paths through their retirement journey. And the road to retirement is likely to change over time, including the specter of unexpected retirement shocks,” said Katherine Roy, Chair of the Retirement Security Research Center. “However, the Retirement Security Research Center also finds it is important to recognize that there are steps one can take in advance to improve their retirement prospects, including understanding and accommodating the underlying behaviors that impact spending in retirement.”
The RSRC partners offering their recommendations consist of asset managers, recordkeepers, insurance companies, banks, advisory firms, and other retirement providers.
Interested in submitting an article?
Submit your information to us today!Learn More