Clients have to feel like they can save for retirement while meeting daily obligations if they’re going to do it, according to a survey released Wednesday by BlackRock. That might seem obvious, but BlackRock found most workers aren’t saving as much as they should.
The survey, conducted by Boston Research Group, found that among respondents who agree that yes, you can save for retirement and meet your daily expenses, 46% were saving at least 11% of their annual income. Among those who disagreed, only 17% were saving at the same level.
“When workers feel empowered, confident and positive about the retirement savings process, they will actually save more for retirement than workers who don’t feel that way,” Chip Castille, managing director and head of BlackRock’s U.S. and Canada defined contribution group, said in a statement.
However, BlackRock says that’s not necessarily good enough. Among all respondents, two-thirds are saving 10% or less and over a quarter are just saving 5%.
What’s worse, even though 70% of respondents said they’ve increased their focus on saving for retirement, less than a quarter are confident they’ll have enough.
The survey identified other attitudes that were common among respondents who were saving at least 11% of their income:
- Almost 40% of people who said they knew what they wanted their retirement to look like were saving at that level, compared with 28% who were still trying to sort that out.
- The same percentage of people who said they could see steady progress in their savings—which implies they are actually tracking their retirement progress as well—were saving at least 11% of their income, compared with 20% of those who don’t.
- Forty-eight percent of highly-effective savers don’t think you have to make a lot of money to meet your retirement goal, compared with 24% who think their income will determine their retirement lifestyle.
- Forty percent of people who had a trusted advisor were saving 11% or more, compared with 30% who weren’t sure who they could rely on.
The vast majority of respondents said they’d be encouraged to save more if their workplace plan gave them an idea about what their current savings would translate to in retirement.