The 15th annual Retirement Confidence Survey, released in April and performed by Mathew Greenwald & Associates and the Employee Benefit Research Institute (EBRI), found that workers would be more likely to gravitate to a retirement plan offering lifecycle and lifestyle funds than they would to a plan that included managed accounts.
Sixty-six percent of the respondents said they would rather invest in lifecycle funds, which are designed for specific age and income groups and become more conservative as the investor reaches retirement. Forty-nine percent of those polled said they’d rather contribute to a retirement plan that included lifestyle funds, which maintain a pre-set level of risk and have a mix of conservative, moderate, and aggressive investments. Only 35% of respondents said that a plan offering separately managed accounts would convince them to sign up.
The survey also found that nearly seven in 10 of today’s workers “are skeptical that Social Security will continue to provide benefits of at least equal value to those received by current retirees.”
Another finding: Only four in 10 workers have actually tried to calculate how much money they will need to save for retirement. More than one-third of these workers, the survey reports, say they asked a financial advisor to do the calculation for them or used their own estimates. Ten percent of respondents simply guessed how much money they would need.