PLANSPONSOR - July - August 2023 - 4

PARTICIPANT ANALYSIS
When Do You Plan to Retire?
A
ment has
mericans' optimism that they
will have enough money to live
comfortably throughout retirelessened
significantly
since
2022-64% this February vs. 73% at the
same time last year-according to the
Employee Benefit Research Institute's 33rd
Annual Retirement Confidence Survey.
PLANSPONSOR's 2022 Participant
Survey, fielded late last October, reflects
a more positive perspective as to when
plan participants and nonparticipants
think they can retire. In the data for
survey respondents, across all age groups,
who are " very confident, " " confident " or
" somewhat confident, " the most highly
represented group is the 18- through
29-year-olds: 41.7% of them have retirement
savings of $25,000 to $49,000.
Of respondents of all age groups
with over $1,500,000 saved, nearly onequarter,
23%, were 18 through 29. Are
these savers optimistic with good reason,
or
too young
to
see things
18 - 29 years old
30 - 49 years old
50 - 59 years old
60 - 69 years old
70 and older
Confident Confident
Somewhat
Confident
19.7% 25.7% 45.4%
25.6% 23.4%
37.7%
15.0% 23.0% 40.5%
Retirement Age and Confidence About Retiring
Very
Not at All
Confident
5.6%
11.4%
19.7%
10.7% 28.0% 42.7% 13.3%
27.3% 22.7%
Current Retirement Savings
18 - 29
Years Old
clearly?
Considering they have decades until
retirement-plus provider guidance
about savings benchmarks generally says
that, by age 30, their savings should total
half the amount they then make in one
year-their confidence may make sense.
In comparison, those 60 through
69 who may be at or nearing retirement
have the second lowest confidence of all
groups surveyed. These workers make up
only 13.5% of the $1,500,000-plus group.
Similar benchmark guidance
suggests
that, by age 65, participants should have
anywhere from five to 11 times their
current annual income saved.
The takeaway? Participants who save
early and let their savings compound will
likely be retirement ready. Sponsors'
and their providers' role to engage and
educate is difficult. Despite increased
attention to building wellness programs
and greater benefits equity, there is more
work to be done.
-Judy Faust Hartnett
4 PLANSPONSOR.COM July - August 2023
Less than $25,000
$25,000 - $49,999
$50,000 - $99,999
$100,000 - $149,999
$150,000 - $249,999
$250,000 - $499,999
$500,000 - $999,999
31.8% 18.2%
Unsure
3.6%
1.8%
1.8%
5.3%
0.0%
30 - 49
Years Old
50 - 59
Years Old
37.4% 39.0% 18.3%
41.7% 36.3% 16.7%
34.3%
41.4% 20.0%
28.1% 51.0% 16.7%
10.3% 46.6%
15.6%
29.3%
45.1% 26.2%
17.3% 40.7%
$1,000,000 - $1,500,000 20.3%
53.6%
32.1%
17.4%
60 - 69
Years Old
4.3%
3.4%
4.3%
3.1%
12.1%
9.8%
7.4%
5.8%
More than $1,500,000 23.1% 36.5% 21.2% 13.5%
Prefer not to answer
31.2%
37.6% 22.6%
Source: 2022 PLANSPONSOR Participant Survey
7.5%
70 and
Older
1.0%
2.0%
0.0%
1.0%
1.7%
3.3%
2.5%
2.9%
5.8%
1.1%
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PLANSPONSOR - July - August 2023

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