IRI survey examines retirement savings habits

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Findings from a recently released Insured Retirement Institute (IRI) study determined workers beyond age 40 are in need of enhanced retirement savings habits and more realistic expectation levels.

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The analysis, which involved 1,000 workers between 40 and 73 years old, showed most workers possess inadequate retirement savings and are not saving enough to address the situation, but most expect retirement income greater than the highest Social Security benefits.

“Older workers are under saved and regret that they have not saved more or wished they had started saving earlier,” Frank O’Connor, IRI vice president, Research and Outreach, said. “Improving retirement prospects requires an increase in the percentage of income saved.”

Per the IRI, the survey responses revealed one in three respondents believe they will retire before age 65 while over half believe they will need at least $55,000 in yearly retirement income. Additionally, officials noted the survey determined 40 percent of those surveyed attempted to calculate how much money would have to be saved to meet retirement income expectations.

“These findings highlight the importance of plans not only auto-enrolling but auto-escalating retirement plan participants to increase savings rates,” O’Connor said. “IRI’s advocacy efforts that led to the enactment of the SECURE Act in 2019 should help workers. Measures included in the law made it easier for employers to offer retirement plans and lifted barriers to make protected lifetime income solutions, and other types of annuities such as fixed indexed and Registered Index-Linked Annuities (RILAs), more available within those plans.”

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