2018 Wells Fargo Retirement Study
Reframing the planning that creates a successful retirement journey
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A GPS for retirement
Nothing is more human than the wish for a long, fulfilling life. That ideal—which we call Long Live You—is increasingly within reach. At the same time, the traditional static road map through retirement, built on older assumptions about longevity, pension income, and Social Security, may no longer suffice.
Employees hold great optimism about life in retirement, as well as uncertainty about how to pay for those years. If we can address that uncertainty, we may be able to help people realize the joy that should accompany a longer life.
Hands on the wheel
more likely to say their financial life is thriving
less likely to have high levels of financial stress
more household retirement savings than people without a planning mindset
are concerned about running out of money
say living to 85 would be a financial hardship
An engine for asset growth
feel more secure about retirement because they have access to a 401(k)
of 401(k) contributors say they’re saving enough for retirement
of non contributors say they’re saving enough for retirement
Change the goal from surviving to thriving
say they have a detailed financial plan (a lower percentage than other generations)
say they want more help from employers with their retirement choices
Action steps for the retirement industry
1. Consider whether your plan design positions employees for success. The building blocks of modern 401(k) plans include:
- Default contribution rates of 6% or higher
- Employer match structured to encourage high deferral rates
- Solutions that guarantee income and help retired employees draw down assets
2. Help participants cultivate a planning mindset.
- Ask your participants whether they agree with these planning mindset statements:
- I am able to work diligently toward a long-term goal.
- I prefer saving for retirement now to ensure I have a better life in retirement.
- It makes me feel better to have my finances planned for the next one to two years.
- In the past six months, I have set and achieved a goal or set of goals to support my financial life.
- Use participants’ responses to gauge where they stand with respect to a planning mindset.
- Throughout 2019, look for tools and research from Wells Fargo Asset Management that will help you encourage planning mindset behaviors for various types of employees, transforming education into action.
Download the Retirement Study
Help make Long Live You a reality for employees.
At Wells Fargo Asset Management, we’re conducting research to understand the needs of employees and employers and develop solutions that can deliver improved outcomes for all.
Together we can answer the call and help improve the journey and the outcomes for your employees.
To reach a Wells Fargo Asset Management Defined Contribution team member, please email us.