Eighty percent of people saving for retirement consider income guarantees a must-have, even if it means giving up some access to their savings, a survey released Wednesday by State Street Global Advisors found. Almost 70% said a guaranteed monthly income stream will be necessary to supplement Social Security.
“Participants are looking forward to life in retirement, and they want to be able to enjoy their golden years without financial stress,” Fredrik Axsater, managing director and head of global defined contribution for SSgA, said in a statement. “They need guidance on what do with the savings they have accumulated–how to spend it and how to make it last.”
Over half of respondents said stable income was a top priority, compared to about a quarter who said generating returns or preserving capital, the survey found. Almost two-thirds said they’ll take monthly withdrawals from their plan, and just 6% plan to take a lump sum when they retire.
The survey found respondents clearly identify themselves as savers. Almost half of respondents said they like to save and almost all of them say they’ve been doing it for at least 10 years. Almost 70% said they started saving more than 20 years before their estimated retirement age. And, although only 24% said they’re very confident they’ve saved enough to retire comfortably, 44% say they’re confident they’re on track to afford the kind of lifestyle they want to live when they’re done working.
When that will happen though is a subject of some debate. Almost half are planning on working until they’re at least 66 and 15% said they’ll probably work past 70. The survey found more people are working longer by choice, too, not necessarily because they have to.
SSgA found that plan participants expect their plan sponsor to be only partially involved in their transition from accumulation to decumulation, but they are looking to them for help. Younger savers in particular were more likely to expect their employers to be involved in retirement planning.