Podcast Center
Video Center
Webcasts
Resource Center
Events
By 
November 24, 2020 at 05:10 PM
(Photo: Shutterstock)Seven in 10 U.S. investors are saving at least 10% of their annual income specifically for retirement, Schroders reported Tuesday. What’s prompting this disciplined, proactive behavior?
According to Schroders, the results of a new survey give a good indication. Fifty-one percent of respondents say reaching the age to qualify for Social Security would trigger their retirement, while a mere 4% state that hitting their retirement savings target would do so.
At the same time, 62% of study participants acknowledge that Social Security benefits are not enough to live on, and 48% worry about not having enough income in retirement.
Schroders said concerns about income security in retirement may also be a reason 35% of respondents state they would invest disposable income in their retirement savings or another type of investment, such as equities or bonds, versus the 5% who would spend it on a luxury item purchase.
“It’s very encouraging to see so many investors telling us they are saving at least 10% each year for their retirement, especially when you consider this survey was taken as COVID-19 was spreading in the second quarter,” Joel Schiffman, Schroders head of intermediary distribution for North America, said in a statement.
But Schiffman added a cautionary note: “If investors start taking their benefits as soon as they qualify for Social Security, they could be leaving money on the table. If they are able to delay by just a few years, they could enjoy higher levels of annual Social Security income for the rest of their lives. Judging by their expectations about spending, they may need it.”
