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2024 Global Retirement

Survey Results

 Participant Behavior and Investment Selection

US SURVEY AUDIENCE724 Plan Participants  
We review what participants understand and what they don’t when it comes to target date funds, as well as share their thoughts on long-term investing and the resources they use to make retirement planning decisions. Plan sponsors and advisors have an opportunity to educate participants on a variety of topics when it comes to investment selection.

 
Participant Concerns &
Retirement Readiness
Participants tell us about their leading financial concerns and areas of focus, their outlook on retirement savings and their views on competing financial priorities.
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Participant Behavior &
Investment Selection
We review what participants understand and what they don’t when it comes to target date funds, as well as share their thoughts on long-term investing and the resources they use to make retirement planning decisions.
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Retirement Expectations vs
Reality
We compare what participants expect when it comes to retirement with what retirees are experiencing in retirement, including their views on retirement confidence and what's most important when it comes to their retirement portfolios.
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  • All Participants

  • Age Generations

  • Gender

All Participants

Understanding of Target Date Funds (TDF)

Q: Please indicate the extent to which you agree with each of the statements below about TDFs. (% somewhat / strongly agree)

Key Insight

Most participants agree that TDFs can help them achieve many of their retirement objectives, however there continues to be some significant information gaps related to the decumulation features of target date funds. Consider if it’s time to revisit your plan’s glidepath and understand how conservative (or not) it might be for those in retirement.

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Resources Used To Make Planning Decisions

Q: What resources do you use to help make investment and/or retirement planning decisions?

Key Insight

In the eyes of participants, plan providers are nearly as important as investment professionals or financial advisors in the retirement planning process. Fewer are likely to cite the financial media or other online services. Share how partnering with an investment professional or financial advisor can support a participant's financial planning goals.

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Understanding of Long-Term Investing

Q: What does "long-term" mean to you when thinking about your retirement investments? 

Key Insight

Over half of participants define long-term investing as 10 or more years of investing, but perhaps more consequentially, only 17% believe a long-term investment has achieved its objectives before the end of a 5-year period. Help participants navigate a long-term investing strategy by understanding these guiding principles.

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Age Generations

Understanding of Target Date Funds (TDF)

Q: Please indicate the extent to which you agree with each of the statements below about TDFs. (% somewhat / strongly agree)

Key Insight

Many participants – especially Gen Zs and Millennials -- need more education on the limitations of TDFs.  Boomers too may need a reminder that TDFs do not invest entirely in cash or other low-risk investments in retirement. Consider if it’s time to revisit your plan’s glidepath and understand how conservative (or not) it might be for those in retirement.

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Resources Used To Make Planning Decisions

Q: What resources do you use to help make investment and/or retirement planning decisions?

Key Insight

While younger investors are more likely to turn to their family and friends when it comes to retirement planning, they are also more likely to leverage an investment professional or financial advisor compared to their Millennial and Gen X counterparts. Share how partnering with an investment professional or financial advisor can support a participant's financial planning goals.

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Understanding of Long-Term Investing

What does long-term mean to you when thinking about your retirement investments?

Key Insight

While most participants consider 5-to-10-year investments as long-term, nearly one-third of Gen Z investors define long-term as a much shorter period of time, which could have ramifications for their investment portfolios. Help participants navigate a long-term investing strategy by understanding these guiding principles.

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Gender

Understanding of Target Date Funds (TDF)

Q: Please indicate the extent to which you agree with each of the statements below about TDFs. (% somewhat / strongly agree)

Key Insight

There are no big differences in understanding of TDF features by gender – all participants could use more education on the features, benefits and limitations of TDFs, especially decumulation features. Consider if it’s time to revisit your plan’s glidepath and understand how conservative (or not) it might be for those in retirement.

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Resources Used To Make Planning Decisions

Q: What resources do you use to help make investment and/or retirement planning decisions?

Key Insight

When it comes to retirement planning resources, men and women have slightly different approaches. Women are more likely than men to embrace their employers and families in the planning process, whereas men are more likely to seek guidance from other third-party resources, including financial advisors. Share how partnering with an investment professional or financial advisor can support a participant's financial planning goals.

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Understanding of Long-Term Investing

Q: What does long-term mean to you when thinking about your retirement investments? 

Key Insight

In general, investors of both genders typically define long-term investing as a period of investing that spans 5 to 10 years, but it is not clear that the same investors stay fully invested during that time. Help participants navigate a long-term investing strategy by understanding these guiding principles.

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