Three key implications from the research:
- How do we help participants save more?
- What is a prudent glide path design when most participants don’t save enough and their lifestyle requirements in retirement have increased?
- How do we help participants decumulate their retirement savings efficiently?
#1
Average contribution rates remain too low
#2
Retirees are spending at higher-than-expected levels
#3
More people are staying in their plans after they retire
<10%
Participants start saving at 5% and never reach 10%. Inflation-adjusted salary has remained flat during this time, which impacts how much people save.
>90%
Income replacement at retirement is more than 90%, contradicting the rule of thumb of 70%-80%.
42%
Remained in the plan three years after retiring—more than double from ten years ago. More participants will need help decumulating their assets.