A new LIMRA Secure Retirement Institute (LIMRA SRI) study finds that 27 percent of U.S. workers, ages 55-64, say they do not know how they will use their defined contribution (DC) plan savings after they retire. Women are much more likely than men not to have planned how they will use their DC assets (38 percent vs. 19 percent)
“It is surprising that such a large proportion of older workers have failed to do this basic level of income planning when most are within 10 years of retirement,” says Matthew Drinkwater, associate managing director, LIMRA SRI Research. “Many believe that they can delay retirement indefinitely, or work in retirement, so it’s possible they feel that there’s no near-term need to engage in this kind of planning.
“But that belief is risky; people often retire earlier than anticipated,” he adds. “It makes sense to give thought to how you will use your DC plan balances sooner rather than later.”