h Jan igh uer ary’s than resul expe ts sho cted w (1 tha 4 p terce three nt -q in u Jan arters uary of vwo s. 2 r1 ke in rs M are o arch ff ). E ered xperien a defin ces ed with h contr ealth car ibution pla e en xpenses , and of Betsy Jaffe tho were se, co abo mp u arab t 9 in le 1 fro 0 clai m Jm an tu hary ey p to articip March ate , with . As o3 f 8 late per M cent arch Dir rep , e these o crtin tor fin g , M hig da in h rer g k s re ethan tin mg an a ex in un pd ect Pu cha ed c b ng li o ed. c sts Re W in lation orkers s Employee Benefit Research Institute who Janu ha ary van e a ret d 40ir perc ement pla ent in M n, e arch ither . an employer-sponsored DC plan or an individual retirement account press-media@ebri.org (IRA), overwhelmingly report better retirement savings behaviors. More than 8 out of 10 workers with a The survey report, 2020 Retirement Confidence Survey Summary Report, is available at ebri.org. 202.775.6347 retirement plan (84 percent) report that they have personally saved for retirement, compared with 17 percent without a plan. Similarly, workers with a plan are dramatically more likely to report total savings About the Survey: and investments of $100,000 or more (56 percent with a plan vs. 7 percent without). Confidence in Retirement Security Remains High Despite Pandemic, but The 2020 survey of 2,042 Americans was conducted online January 6 through January 21, 2020. All Plan participants are, and remain, highly satisfied with their employer-sponsored retirement plan. In respondents were ages 25 or older. The survey included 1,018 workers and 1,024 retirees. In light of the Signals Change With Widespread Unemployment January, 83 percent were very or somewhat satisfied with their plan overall. The same share expressed potential impact the COVID-19 pandemic may likely have had on RCS results and key metrics, a Workers’ Satisfaction With DC Plans Is High, but Reveals Some Crisis Impact satisfaction with the investment options in their plan, which they select primarily based on supplemental survey of key questions was refielded from March 20–30, 2020. Data were weighted by performance/growth (43 percent), alignment with risk tolerance (34 percent), and consideration of fees age, gender, education, household income, and race using Census CPS data to reflect the composition of WASHINGTON – April 23, 2020 – The 2020 Retirement Confidence Survey (RCS), fielded in January, (29 percent). While the selection criteria remain the same, satisfaction with plans both overall and with Americans ages 25 or older. found 77 percent of retirees are confident in their ability to live comfortably throughout retirement, the investment options available is lower, but still strong, in March (76 percent each express satisfaction down slightly from 82 percent in 2019. Despite the subsequent pandemic, that number barely changed The survey was underwritten by Capital Group, Columbia Threadneedle, Invesco, J.P. Morgan, LGIMA, with the plan overall and with investment options). when the survey was re-fielded in late March (76 percent). Lincoln Financial, Mercer, MetLife, Nationwide Financial, PIMCO, Principal Financial Group, T. Rowe Nearly half of workers (48 percent) in 2020 say they tried to calculate how much they need to save for Price, Segal, and th Vanguard. Now in its 30 year, the annual RCS is the longest-running survey of its kind, measuring worker and retirement, an influential planning step, up from 42 percent in 2019 and 38 percent in 2018. Four in ten retiree confidence about retirement. It is conducted by the Employee Benefit Research Institute (EBRI) About EBRI: estimate they will need to save $1 million or more, also up from 34 percent in 2019 and 27 percent in and independent research firm Greenwald & Associates. The RCS was conducted in early January, prior 2016. Workers who have attempted this calculation continue to be more confident in their retirement The Employee Benefit Research Institute is a private, nonpartisan, nonprofit research institute based in to the coronavirus crisis that is greatly impacting U.S. and global markets, businesses, and security than those who do not try. Washington, DC, that focuses on health, savings, retirement, and economic security issues. EBRI unemployment. Recognizing the impact these events may have had on RCS results and key metrics, the conducts objective research and education to inform plan design and public policy, does not lobby and researchers refielded a supplemental survey of key questions from March 20–30, 2020. Workers commonly save in their workplace retirement plans. Consequently, 8 in 10 workers (82 does not take policy positions. The work of EBRI is made possible by funding from its members and percent) expect income from a workplace retirement savings plan (separate from a pension plan) to be a Workers also remain surprisingly confident, except when job security was threatened. In January, 69 sponsors, which include a broad range of public, private, for-profit and nonprofit organizations. For major or minor source of income in retirement, while half of retirees (49 percent) report this is a major percent of all workers reported being very or somewhat confident in their ability to live comfortably more information go to www.ebri.org. or minor source of income. throughout their retirement years, comparable to 2019. In March 2020, the percentage of workers About Greenwald & Associates: feeling confident is statistically unchanged at 63 percent. However, those who fear the current Furthermore, 57 percent of retirees report that they had savings in a workplace retirement savings plan pandemic may impact or has impacted their employment status exhibit lower confidence. at the time they retired. Of those, slightly more than 4 in 10 (44 percent) rolled their savings into an IRA, Greenwald & Associates is a leading, independent research firm that has been specializing in retirement, while 3 in 10 (31 percent) kept it in the plan. Retirees with DC plan and/or IRA assets do not report employee benefits, and health care research for nearly 35 years. For more information, go to “Understandably, retirement confidence is significantly lower among those who say their employment significant withdrawals for income, as 3 in 10 withdraw only the required minimum distribution and www.greenwaldresearch.com status has negatively changed or anticipate it to negatively change within the next six months. Those nearly as many report that they do not withdraw at all. In fact, three-quarters of retirees state that they who have experienced or worry about negative employment changes lag about 20 percentage points aim to maintain, or even increase, their assets. behind other respondents when it comes to confidence in having enough money to live comfortably in retirement, take care of basic needs, and cover medical and long-term care expenses in retirement,” “Income remains a high priority for retirees. When asked to identify their guiding principle for managing said Craig Copeland, EBRI senior research associate and co-author of the report. finances in retirement — income stability vs. preserving principal and wealth — 3 in 4 of both retirees (76 percent) and workers (75 percent) select ’Income Stability: Ensuring a set amount of income for ”In an attempt to give some context to the current crisis, the supplemental survey asked which of seven life,’” said Greenwald. Also notable, over half of workers suggest they expect a product that guarantees major issues is most critical in America today, and more than a third of retirees identify ‘health care’ as income for life, such as an annuity, will be a source of retirement income for them, whereas only about most pressing, followed by a quarter who cite ‘the economy.’ Workers are split evenly between the two. a third of retirees (36 percent) receive income from this type of product. Only 3 percent cite Americans’ retirement readiness as most critical,” said Lisa Greenwald of independent research firm Greenwald & Associates. At the same time, half of retirees report that their overall expenses in retirement are as they expected. A third of retirees (34 percent in both January and March) report overall expenses in retirement are “Retirement confidence continues to be closely related to having a retirement plan,” said Copeland. “Of higher than expected. In January, pluralities of retirees reported that spending in several different workers who are confident, 96 percent contribute to a defined contribution (DC) plan, and 94 percent categories was as expected, including health expenses. There is some indication of a changing scenario are currently saving for retirement. Good health also impacts confidence, with 68 percent of confident in March, as more retirees indicate spending on entertainment and leisure is higher than expected (21 workers citing being in very good to excellent health.” percent in January vs. 30 percent in March) and more report spending to support a family member is