“Seven thousand baby boomers are turning 65 every day, and will be doing so every day for the next 17 years.” Putnam Investments President and CEO Bob Reynolds used that sentence to begin his keynote presentation at the 4th annual Retirement Income Symposium Monday in Boston.
But beyond setting out the scope of the retirement puzzle, he then went on to provide some practical solutions to solving the puzzle while laying out the “multitrillion dollar opportunity” that those boomers present for advisors.
Reynolds (left) said “we’re close to cracking the code” on saving for retirement, which includes providing access to retirement plans, auto-enrollment in those plans and the use of better asset allocation options within the plans. Putnam’s research, he says, has found that a 10% or more deferral rate will provide consumers with what they need in retirement, once Social Security is factored in.
“What’s the variable between those who are best and least prepared” for retirement, he asked? “It’s not income,” he answered, citing research that shows that participation rates in workplace retirement plans with auto enrollment are as high as participation rates for workers with higher incomes.