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The Retiree Reflections Survey was fielded in Spring 2022. The sample consisted of 1,109 American retirees between the ages of 55 and 80 with at least $50,000 in financial assets. The survey sought to understand use of a financial plan in retirement, financial advisor use and assistance, priorities in retirement, spending concerns in retirement, financial worries preretirement and postretirement, and reflections upon past financial decisions.

Some of the key findings include:

  • Current retirees wish they’d saved more and planned earlier for retirement. In an open-ended format, retirees were asked to detail what pieces of financial advice they would give their younger self. The majority (70 percent) would advise changing savings habits by saving or investing more or earlier.
  • Retirees seem to fare better when they have an advisor. Specifically, retirees with a plan and/or advisor were less likely to have financial regret, when measured as the desire to change past financial habits in order to improve their current financial situation.
  • Approximately 9 in 10 retirees who used a financial advice professional to create a financial plan were satisfied with their financial professional and felt the value they received from using an advisor outweighed the cost. [Note: High satisfaction rates may in part be due to sample selection as well as advisory relationship survivorship.]
  • Relative to the transition to retirement, retirees who worked with an advisor on their financial plan reported that the primary benefits were asset-allocation-related, including assistance in identifying their risk tolerance and help understanding how to turn their retirement savings into an income stream.
  • Few retirees (25 percent) reported that their former employer offered financial planning assistance, potentially reflecting a timing difference (the benefits were offered after their employment tenure) or an awareness gap, revealing a need for improved communication.
  • Many retirees don’t have a formal financial plan for retirement. Only 4 in 10 (42 percent) retirees surveyed had both identified financial goals in retirement and developed a written financial plan. Retirees report various reasons for not identifying financial goals in retirement, including lack of knowledge, admitted procrastination, and unexpected events that were competing priorities.
  • While not saving enough for retirement, unexpected medical expenses, and preventative health expenses were the top financial concerns preretirement, inflation is the most frequently cited financial concern during retirement, identified by more than half (54 percent) of current retirees. In addition, approximately 1 in 3 retirees remain concerned about health- or medical-related expenses, running out of money, and market volatility.

EBRI was able to fund the development of this research thanks to generous support from Edelman Financial Engines. Edelman Financial Engines, LLC is not affiliated with EBRI.

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This Retiree Reflection Satisfaction s With Financial Advice Professional Looking Back Five Years Prior to Retirement, What Primary Open-Ended Responses on Changes to Financial Habits Percent Did Youag r Fo e of rmer RetEmplo irees W yer ithO an ffer Ina Fin vestm ancial ent Port Adv fo is lio ory Benefit? 3 <=2 Years (COVID Era), >15 Years, Figure 1 t t A the ha he mir t ong m 23 cost ur tp r ho e e w rnt se, c ite h. fin nt 71 The a of nc pe e ia m m rl sit ca p ejloy nt or O ua it p e st y te e ia on s ( n r74 ta -e , E rd ha e p n us e a d lf of rw e c ing a e dr nt e r B a e ) t a the fin of ir re ry a ie te he nc s a r r s (se ia e 50 t l offe o r a e p d D te v ir r e ric e e cfd e e e in nt s p p in indic ) r eofe r g sa sona F id ss a in tiona y e liz a e dn s e tc d l long ( he Fi ia fin g lm ur a G ost nc e o b e a ia 16 fo he ll c s)r . lp e iouns n Re r w e R tta iir e e rs in a e e tlin ie m rs e g e m , w nt n a cho e oa , n 15 ss c thhin e ap td e a gr a lloc , c e fin or nt a a p t nc ion ca st laa nni ia rt l p eng. d p la an c , ity, Issue Brief was written with assistance from the Institute’s research and editorial staffs. Any views expressed in I The An a pprn o sa oxim m pe pa n le t-e eus ly nd e ha e dd lf a for of twm o re - atq tir , ue ere e ss ttir ion a (e 48 es w p pe pe rrc roa Fin e e nt c a W h to id sk ) ancial ho d eid d tCreated not o ent d W e ify unde torries a ing il w rst rha th ea tir nd t e Kept e pFin e ie how st ceancial a s of Y t t us ou axe , fin inc s w A aPlan w luding nc ould ake? ial a im d those vp ic ae c t t w he the ho yir w c ronsi ould etire d m g er iv e ee nt d t the fin heir a ir nc y w oung ia or l kin eg r What would you have changed about your financial h24% abits? Fi gure 12, Practice Features of Financial Adv 15% ice Professional ................................................................................... 13 45% By Bridget Bearden, Ph.D., Employee Benefit Research Institute WhS yu hra v ve ey n ’tS ya om u p idle en , tK ifie ed y g D oe alm s o fog r r re atp ire hm ice snt? w r w eor or prk k eing e sent d w w ing itith a h th 38 fin e p m a enc rim ce ia m nt l a e w d dia v ho is te esa ly r on id betfor the hee ir m r p ost et la irn, e he m alp end nt w , ha aasnd d in hig 1 u4 nde he pe rr rfin st ce aa nt nding nc st iaal a r tre is ss d ke ttthe s ole w irre a rre nc ela le et iss onsh and lik36 e ip ly a ptft e o e rc a r e g rnt r ee t ir e w etho m he ey sa nt w id (ould Fi the gu rha m e ost v 7e ). (Select all that apply.) st si sel taua f. tus ttThe his ion to r( m e bFi p eag or jrur or ett it e ir a y re 23 e d ( 70 , t)hose .not N pe e w a rof c ror ly ent t khe 4 ing ) in w aould ( ut 10 82 hor (p 38 a e a d rnd c v pe is ent resh c )e c;ould nt ha re )ng tsa ir not ing eid d, tb sa w he eor v ya ings ha ksc aing rreibe p pa a d b y r it ing tt o st im b the d ye iff sa ( offic e7v r e ing pnt e err c t or s, t a exe nt inv r); us s t e t or ha st ee ing n e ts, or hose xpe m or ot w ce he tho eor d r ha sponsor ( eFi adr g lie a ur rc e. ur s of 24 re)nt . E Of B non R I, - Figure 3 42% Selection of open-ended responses. Figure 20 Extremely Dissatisfied, 2.5% Among those who did not work with a financial advisor on a plan, 47 percent said they would have benefited from Figure 13, Perceived Value of Advisor ................................ Selection of open-e ................................ nded responses ................................................... 13 c he ha lp nge wads tin heunde ir fina rst nc aia nding l hab h itow s d ur to ing turtn th heire w ir orrekting irem ye ent ar ssa . vings into an income stream (Figure 11). Another 8 percent of Employee Benefit Research InstituteDo -Ed uc You ation a Dond An Re y sea Vol rc un h Fund teer (W EB ork? RI-ERF), or their staffs. Neither EBRI nor t r Ahose eptp irreoxim m weho nt a ta w erly or e k 12 ping a yp ing e st rc ad e tus iff nte w b re ut ould nt c tonsi a g xe ivd s t ee trha he edn e m the selves xpe mselves ctem dor , te r he e spe t ir m ea c djifi or fr com it in y v (e a 60 st p m rpim e ernt a cre y g nt uida c)a r ae rnc e er p e(a , 11 y highlight ing per m ce or nt e ing ) t ha (Fi tan e gxur -d xpe e e fe 2) c r.tr e e Td d he . 40% 39% 39% What Causes Concern About Your Spending? June 16, 2022 • No. 561 speaking with a financial advice professional during their career. One in three (32 percent) indicated that they would those retirees indicated the advisor helped them with other areas of retirement transition, which may have included 45% p inv rop est E or B m tRI ion o ent -E RF lob af crce ou tirnt b eie e s, a s ( s or 1 in ss teatk 5 a e )lloc s p who a ot si ion, d tions id D or not o you on w ide or spe ha “k Int ing w ve cify o ific u an w ld t he ip it nve holi h a am vst e cs y m c p e u en lv r ptofe r e tw op po s ass y a osa rt s fiona b ol a si ils o? cm k. l fina p o En ly B RI d jinc us s cinv ria te “ tl a it ir oe e nd ts c air v ry e is o d e em , x r. p not m e Ae nnot s nt w e sor he on , s kr u ing tc 7 p his h ” e rindic e rc sea ent ar tcw eh. s ould tha ta w dv or isk e, Figure 14, Did Your Former Employer OffeSe r al e Fi cna tionc n o ia f l Adv openis -e or nd ye B de re ne sfit po ?n ................................ ses. ................................. 14 Somewhat Dissatisfied, 2.5% Introduction not have benefited from speaking with a financial advice professional, while another 22 percent were not sure. Age as taken fewer vacations and saved more money for my b udg 35 e% ting, estate planni 41%ng, or othe r services. c cha onc ng ep ing tua tlly he,ir i s oft spending en tie d ha int bit o s. the retirement identity.Figure As repo23 rted in prior EBRI work, among the retirees working in 32% The Retiree Reflections Survey was fielded from Apr “B il 26, ecau 20 se 22 I do , n t’o t kMa now y 8, 2022 where to . sThi tart”s post-COVID-pandemic period Figure 40 15 % , "I Wish I Started 55–59 Planning Earlier for reti rMy em eRe nt.t ”irement" ................................................................ 19% ............. 14 1 Retiree Reflections this later stage of life, the m Lev ost el freof que Und ntly c erstandin ited reason for g of c T ont axes inuing During to wor kRetirement into retirement was “work is rewarding.” Suggested Citatio Spen nd : iB ng earden, Bridget, “Retiree Reflections,” EBRI Issue Brief, no. 561 (Employee Benefit Figure 12 Neither Satisfied nor “Instead of buying trendy clothes/shoes I should have bought 60–64 36% “Don't know who to go to for advice” 27% c omp 30 r% ised of high market volatility, rising inflation, a war in Eastern EuropAend , a ifn so, d c do ont you in ue rebd al an polit ce your ical p po ola rtfol riza io?tion. During During your primary career, do you feel that you understood how Lack of Knowledge “This year is the first time that I have experience sign Di ifsic sati an stf ied inf, la 3.8% Ytes io, nUs sied nc It , e 72% Research Institute, June 16, 2022). 27% Figure 16, Would You Have CPractice hanged Any Fe thin atures g Abou of t Y Fi our na Fi nc naial nciaA l Ha dvb ice its tProf o Imp essio rove Y na our l Current Financial 35% stocks.” 27% taxes would impact y “I o nu er fin ed h ae nlcia p w l isitu th th aa tio t”n in retirement? 65–69 Figure 7 23% tBy his Bridg time, re ettir Bea ees d rd ete aile n, dPh.D., current E fin mplo ancial w yeor e Ben ries ae nd fitp R rov eide sed a rch I candidns thoug titutht es a bout past financial behaviors. Not all 50% Conclusion I retired - it bothers me to have to pay significantly more for some things Yes, 57% Situation? ................................................................ “I would havFigure e bought 16 fe................................ wer new cars.” ............................................. 15 47% No, 75% 25% “I am not sY ues re, w 25 h% at to do.” Extr When emely Sati Did sfied 70–75 , Y 66.3% ou Start Working With This Financial Advice Prof 19% I Don essio 't Kno na w, 11% l? r eflections were about mistakes and regtr he atns, how I used e to v.e ”r, as many were content with past decisions — such as working 8–15 Years, Copyright Information: This report is copyrighted by the Employee Benefit Research Institute (EBRI). You may 30% Figure 11 In this Issue Brief, we analyzed a combination of closed-ended and open-ended survey questions about financial Would You Have Chan “Uge sed d aA Rn oty ht Ihi RAn ig nstA ea bo d ou f tt he Y n ou orm r aFi l [T na radnc itioial nal] Hab IRA.”its to 28% 75–80 12% 45% “Inflation is out of control. Everything costing more…” Fi wit gur h a e fin 17a , nc Op ia el a n-d Ev nde isor d or Re b sp eonses ing fruga on lC . ha Thr nge oug s t h o the Fina se nc reifa le l Ha ctions bit 20% s , ................................ important statistics em ................................ erge about retirees’ p .......... ast 16 Figure 2 copy, print, or d Tow ransit nload io tn hisEleme r eport nt solely for s That p Fi erna sona nc l a ial ndA nonc dviso omrs mer Help cial use ed, Ret provirees ided tha W t ith all hard copies retain advice, financial concerns, and past Imp derov cisions e Y “ I tou w o ounde ur ldCurrent nortst ha and ve ta cFin k ur en re ancial a nt ny r 4 e0 tir 1(e kSituat e ) lsent oansim a ion ne dnt w ? otro keb de c tt lo esre inf r orm retirement plan 20% A T “ I ne A ver thG ougL ht aA bouN t it.C ” E “Prices have increased but income is stagnant.” After Retirement, 25% Labor Market Status, Self-Reported fin ancial behavior that employers and the broader benefits industry can reference on the journey to improve outcomes Investments Accounts or with financial advisor.” 23% any and all copyright and other applicable notices contained therein, and you may cite or quote small portions of Fi be gne urfit e 18 de, si Lg ookin n. Som g Bea c of k tFi he ve k Y ey e atrhe s P m re ior s t tha o Re t e Ytm es ire er m ge ent d , in d No Wha ata t P arn im aI D ly asi r on ys inc 't K Fina nolude wncia l Wor the im rip eor s K ta enc pt eY of ou w Aor wa k ke eff ?or ................ t in 17 14% Inflation 16% “I guess I am just postponing it” 40% Gender Allocation for future generations. “I wouldDi hs a ab ve led b e an en d Unab more le a to ggressive with my investments Did Not Use It, 28% P rocras40 tin % ation “We are generally fairly thrifty, but inflation is eating away at our income.” The tRe 1he 5%t ir re ep eor Re t flect provions ided S tha urv t eyyou wa ds fie o so ve lded r bin Sp atim ra ing nd 2022. with p The ropesa r cm itp at le ion. consi Any st e us d eof be 1y ,109 ond A the me sc ricop an r e of etirte he es b foreetg woing een Unemployed, retirement identity, strong satisfaction among those who use financial advice professionals, and significant concern 13% 37.8% “Don’tW w or akn , t3% to think about it.” 20% Male Employed Full Time, 45% when I was younger.” Figure 19, What Financial Worries Keep You 1% Awake Now That You Are Retired? ....................................................... 17 Yes , 51% 23% 68% 9% the ages of 55 and 80 with at least $50,000 in financial assets. The survey sought to understand use of a financial plan requires EBRI’s prior express permission. For permissions, please c1% ontact EBRI at permissions@ebri.org. “The cost of living that has increased this yearE . m Itpl is oy t ed he P w art or Ts im t e th , at I have regarding inflation. Overall, ret 35.9% irees wished they saved more during their working years in order to improve their No, 38% 35% “I am a procrastinator.” Female “Not been so specu Yles at, iv 63 e % with investments.” 55% 10% $2M+ 4% Somewhat Satisfied, 25.0% 10% No, I Haven’t Rebalanced ever seen.” 2.1–7 Years, in retirement, financial advisor use and assistance, priorities in retirement, spending concerns in retirement, financial Fi gure 15 20 % , What Causes Concern About Your Spending? ......................................................................................... 18 current 35 % financial situation and would encourage their younger selves to save more and save earlier. Benefits managers Retired, Working Part Time, Relationships Yet, 21% 7% Homemaker, 33% 6% R Aep bout ort Availabili This Sur tyvey : Im Thi med s r iate ep lyor Bt ef ore is“ In afv laa tila ionb a le n don matrhe ke tint vole artne ilityt ia st d w ep w lew tin .e gb m ri.or y sa gv i ngs...I may need to get 7% 40% 30% 48% 13% w orries preretirement and postretirement, and reflections upon past financial decisions. 1% can use 30% this information to help support programs that increase savings and 29% help preretirees prepare for retirement Marital Status “Would “h D ao ve n 'tt a fe ke eln t h ce re n de ite c da , rm ds y a pw aa re yn ftrs o m di dm fiy n e w iw fe it.h ” out formal goals.” Retirement, 5% $500k-$2M Figure 21, Percentage of Retirees With a an I parnv t te im st em joe bnt , u n Ptor il m tfolio y So ................................ cial Security kicks in.” .............................................. 19 10% 27% 27% Source: Employee Benefit Research Institute Retiree Reflections Survey, 2022. 15% through practices like creating a financial plan that a “T d hd erre e sis ses no rh is uk g et ole neerd a”nce and retirement income No sour , I Doc n’e t s P. lan Thi to s Married “Three desperate women that picked my pockets c 66% lean” 30% Respondents were qualified as retirees based on a two-part test: Either they conO sithe de r,red themselves “retired, not Source: Employee Benefit Research Institute Retiree Reflections Survey, 2022. Som e of the key findings include: Rebalance, 13% 57% 32% 10% Table of Contents Figure 22, Are You More Concerned and Sensitive About Market Volatility in Retirement 1% Than You Were Before 25% No Perceived Need “It never occurred to me to do so.” prepa0% ration may help to imN po rov t me a rm riea dj,or liv id ne gc w is itions h a p su artc nh a er s age of retirement and spending 4% in retirement. 5% “I can barely cover my monthly living expenses.” working” or “retiredS , < pw $5 ou or 0s 0k k aling part time,” “or I w o the uldy [ hha ave d] a dn um ap ce tidv e m y la d beor ad b m ea ar t k be oty fst rie antd us m b uut ch c eonsi arlierd .”ered themselves Not Saving Medical Health Care Inflation Unexpected Market Making Sure Housing Cost Cost of Other Paying for Non-Housing I ntroduction .......................................................................................................................................................... 4 Retirement? .......................................................................................................................................... 19 Divorced or separated “I have no need to formalize them.” 15% Enough for Expenses Expenses Non-Medical Volatility My Spouse Is Caregiving College for Debt “Spending too much on bills and not having enough for normal living 1% r •e 25 tir %e Cd ur fr re om nt rae tpir re im es a rw y is ch th areee r. y’The d sav su ed rv m eyor sought e and p to launde nned re st aarnd lier us for e r of eta ir efin ma enc nt.ia Il p n a lan o n in r pen e-te irnde eme dnt fo , rfin ma atnc , ria el tirees Reflecting on Past Financial Behaviors I Don’t Know, 10% Retirement (e.g. (e.g. Emergency Financially Your Note: n=320. “Got a d 54% ivorce so I would only have to worry about38% myself.” 8% 20%Did Not Work with Advisor on 0% Widowed expenses. “ 7% emergency) preventative, Expenses Secure if I Child/Children About This Survey ................................ Source: Emp................................ loyee Benefit Research Institute Ret ................................ iree Reflections Survey, 2022. ................................................. 4 Figure 23, Level o Daf U ily nde budg re st tia nnding g of Taxes During Retirement ............................................................................... 20 advis w or e rus e F a eisk n /a an e ss cd ial is t P to a lan nc dee ta , il p rw ior ha ittie ps in r ieces of etirefin me ant nc, iaspe l ad nding vice t he conc y w erould ns in r giv ee tir te he mir e nt young , finae nc r self. ial wor The ries p marje or rit et yir (e70 me nt long-term Passed Away No, and I Am Not Considering It No, but I Am Considering It Yes, Full Time Yes, Part Time Overall, half of retirees (49 percent) agreed w “N it oh th t gete m st aa rrt ie ed m .”ent, “I wish I started planning earlier for retirement.” “Making sure that I stay within my allotted monthly budget.” Endnotes Sin cg arlee ), never married 8% 15% Setting Financial Goals and Plans for Retirement and p pe ost rce re nt tir ) ew m ould ent, a ad nd vis ree fl cha ectngi ions ng upo savn p ings ha ast fin bit as b ncia y l d sae vc ing isions or . inv esting more or earlier. Description of Sample ............................................................................................................................................ 4 Re tire20 es w % ho had a financial plan, used a fina “S nc aia vel a d m do vris e,or w o to rk c m re oa ret e o vtehe rtim pela . n, Du m and p thh ea bd lo highe od sucrk fin ersa ”ncial assets were less 15% “I often wonder if I'm paying enough attention to our spending, and if we 43% 46% 11% Figure W ork 24e, d wi Im th pA ad cvti sof or on Ta Fxe inas o ncian Re l tireme So nt urc Fi e: na Emnc ployia eel Sit “ Be I h ne a ua fid t Res t to ion e re a rc t................................ ir he In d sti u tu ete t o Ret hie rea el Ref th r le e ca tio sno sn Su s,................................ rv s ey o, 2 I 0h 2a 2.d no time to plan.................. ” 20 Source: Employee Benefit Researc h Institute Retiree Reflections Survey, 2022. Source: Employee Benefit Research Institute Retiree Reflections Survey, 2022. Four out of five (81 percent) retirees surveyed indicated they had identified their financial goals for retirement. Despite • Retirees s Plan eem to fare better when they have an advisor. Specifically, retirees with a plan and/or advisor were should switch providers for our services.” Friends/Other “Lend less money to friends who don’t pay back.” lik 1 ely to agree with the statement (Figure 15). Among those retirees who did not Lo stng ar B t ef w ore ork Reti ing rem w en itt,h their current “I was just trying to adjust to the death of a family member and moving to a new The Role of Work in an Ev Folv inaing ncia Re l A tir ss eem tsent Identity ................................................................................................ 6 Lucas, Lori, “Why Do People Spend the Way They Do in Retirement? Findings From EBRI’s Spending in Retirement Survey,” No, 37% Quotas were set on age and gender based on the U.S. Census to be representative of the American population 71% this, morle e ss tha lik n ha ely lf to (55 ha vpee r fin ceant nc ) ia sa l r id eg the rety, d wid henot n me ha av su e, re or d a ds id the not d k enow sire tao bout cha ng hae v ing, past a fin wa rit nc teia n fina l habnc its in o ial pla rd n o er rt o 10% “I was sh wo in m de le id n o au n t e ow f o c vo em r $ m 1u 0n 0i,t0 y0 .”0 in funds by people.” U a nd ev xp iseor ct eunt d Eil vene ntsar or after retirement, many (57 percent) said they could have benefited from speaking with an advisor 15% $50,000–$249,999 53% 36% 44% 11% EBRI Issue Brief, no. 522 (January 14, 2021) Setting ageFi s 55 nanc –80 ia. l G Doa ata ls aarnd e ot Phe lans rw is for e unwe Retireight ment ed ................................ . Unless otherwise indic ................................ ated, the data represent ................................ a sample size of ...... 8 “Really only one thing - the extent to which my wife wants to take strategy. When looking at the overlap, we found that 4 in 10 (42 percent) retirees surveyed had both identified goals im Do p no rotv ha e vt e he a fir ina c nur cialr pl ent an financial situat“ion Wo. u ld “h C aO ve V n ID o ts h ee t lp ue sd b d aa cu kg ” hter with college” earlier in their career. Figure 10 $250,000–$499,000 19% 2 vacations – it’s a little too often and expensive for me to feel comfortable 1,109. At 95 percent confidence, the mar 10.6% gin of error is 2.94 percent in a similarly sized random sample. Please Copeland, Craig, “2021 EBRI Financial Wellbeing EmployFigure er Surve22 y: Focus on COVID-19 and Diversity Goals,” EBRI Issue 5% “I would “h M ayv e il ls na ev se sd cle as m se f o orn t h fae s tk ia dn sd ' c re oa lle lly g e d ie dd nu 'tc h aa tiv o e n ta im nd e to plan.” and • a wrA itp te pn roxim financ ate ialy l p 9 in lan. 10 retirees who used a financial advice professional to create a financial plan were satisfied A dvisor Use and Satisfaction ..................................................................................................................................10 Source: Em p Experi loyee Beneence fit ResearcWit h Instih F tute Ret inan iree Ref cial lectionA s Su dv rve ic y, e 202Pr 2. ofessional Chil$ d5 re 0n 0/,C 0o 0l0 le –g $e 999,999 22% Note: n=320, retirees wh47% o used a fFigure inancial adv19 ice professional to help create the 43% financial plan. 10% 3% with it.” 10% note percentages in the following tables a mnd ore c fo ha r rretts m irema ey n tnot .” total to 100 due to rounding and/or missing Brief, no. 544 (OctobA er re 28,Y 20 ou 21) More . Concerned and Sensitive About Market Volatility in Source: Employee Benefit Research Institu 8.1% te Retiree Reflections Survey, 2022. with their financial professional and felt the Perc value ent age theyAgree receive / d D is from agree using an advisor outweighed the cost. Have a financial plan $1,000,000–$2,999,999 12% “Having to support other family members who did not plan for retirement What Financial Worries Keep You Awake Now That You Are Retired? Reflecting on Past 12 0% Financial Behaviors ....................................................................................................................14 “Saved more and not gave too much to my kids.” Among those who have a financ Retirement ial plan, the m Th ajor an ityY (ou 65 p W erere centBefo ) work re edRetirement with a financia ?l advice professional (Figure ca0% tegories. "I'm just winging it now” 3 [Note: High satisfaction rates may in part be due to sample selection as well as advisory relationship very well” Figure 15 $3,000,000 or more Disagree Neither Agree 2% Agree EBRI/Greenwald Research Workplace Wellness Surv (Sel eyec , 202 t al 1l. that apply.) 5.0% 70% They Charged a They Charged They Were a They Were a They Were I Don't Know Other 50% 39% 11% Figure 24 Relationships I 6 nfl ). a One tion C 5% -thir onc d (e36 rns p Jum ercep nt P ) ost rep re or tir te ed m c ernt ea ................................ ting the financial plan ................................ on tno he r ir Di sow agre n, e 11 perc................................ ent used resources ma ................. de available 16 “I live each day as it comes” Note: n=556, those who “M wy o u hlu ds h ba av n ed ch sp ae nn gd es d m soo m re e tth hia nn g a hb eo s uh t o pu als dt. fiH ne a nd ci oa els h na 'tb s ite se the big Flat Fee Commission Registered Fiduciary Associated With a survivorship.] "I Wish I Started Planning Earlier for My Retirement" Overall Yes No I Don’t Know Figure 4 4 Impact of Taxes on Retirement Financial Situation Investment Advisor Broker/Dealer Copeland, Craig10 , a 0% ndSo Lis urce a Gre : Em ep nw loya eld e ,Be “2021 nefit RR es ee tire arch me Innt stitCon ute R fid ete ire nc ee R S efurve lectioyn:s A Su Cl rv o esye , r 20 L2 o2o.k at Black and Hispanic Americans,” by their previous employer, and 10 percpe ic nt tu rus e.”ed online resources. Among those with a written financial plan, 93 S pontaneous Nature “Like to freestyle” 1.3% 1.3% • Relative to the transition to r 0% e 10 tir %ement 20, %retire30 es % who 40 wor % ked 50 w% ith an 60 ad %visor 70 on %their80 fi% nancia 90 l p %lan r10 ep 0% orted Many Retirees UnprepareEmp d R afo ce r lo Tay xe er s in Re Size tir (A em m eo nt ng ................................ Those Retired Fro ................................ m Prior Career).................................20 How have taxes impacted your financial situation in retirement? Agree Neither Agree nor Disagree Disagree 60% Note: n=320, reflecting retirees who use“ dW a fh ine an nc o iau l a rd a vid ce u l ptro c fe h sis ld iorne an l to a h sek lp fth or e m h e cre lpa te w iat f h in e an xcp iae l n pls ae n.s.” EBRI Issue Brief, no. 530 (Employee Benefit Research Institute, June 10, 2021). Description of Sample “Goals change” percent said it detailed their income sources in r Inflatie ot nirement. 2% 54% 0% 60% that the primary be Wne hitfit e s were asset-allocation-related, including assistance in ide 92% ntifying their risk tolerance Respondents were asked to select all that apply. Advice for Younger Self: Sav So e uMor rce: Em e pa lond yee Be Sa nv efie t Res Soone earch In r ................................ stitute Retiree Reflections Survey, ................................ 2022. ..............................21 Risk Tolerance Understanding How“Sa Ty ax in Im g pl “N ico ati ” on to my wifeO o the r krids.” Direction on My Whether I Should Direction on My Source: Employee Benefit Research Institute Retiree Reflections Survey, 2022. The sample of 1,109 included American retirees between the ages of 55 and 80 with $50,000–$5,000,000 in financial 53% 80% Nonwhite 8% a He nd alth Ca help re E und xpee ns res st ( ae.g nding . prev en how tat $2 iv M+ et, l o on tur g-te n th rm c 23% e are) ir retirement savings int 39% o an income strea 36% m. 39% to Turn My Savings Social Security Downsize Spouse's Social Retired, Not Working, Figure 6 Into Income Distribution Security C onclusion ...........................................................................................................................................................21 assets. Approximately half of the retirees surveyed were in their 60s (Figure 1 82% ). The average birth year for the sample Note: n=207, those who have not set financial goals for retirement. • Few retirees (25 percent) reported that their former employer offered financial planning assistance, potentially 15% How Did You Build out Your Written Plan to Help You Reach Your 50% Medical Expenses (e.g. emergency) Figure 13 34% Inflation Concerns Jump Postretirement 50% Source: Employee Be N no etfe it :R ne =8 se 5a 5rch . Institute Retiree Reflections Survey, 2022. was 1955, reflect Note: ing n=320 a, n a reflev ctie nr ga reg tie re ea s g wh eo of used 66 a f in for anc ia yle ad avr ic-ee pnd rofe s20 sio21 nal to . Me help d thia emn b crea ir tet h ye a finana cir a l a plnd an. age were similar, at 1956 and 65 Education Level Note: n=1,075 among those who considered themselves retired from a primary career. reflecting a timing diffe$500K renc– e2M (the benefits w40% ere offered after their e 26% mployment tenure) or 34% an awareness gap, Endnotes .............................................................................................................................................................21 60% Financial Goals in Retirement? Perceived Value of Advisor Source: Employee Benefit Research Institute Retiree Reflections Survey, 2022. Source: Employee Benefit Research Institute Retiree Reflections Su83.1% rvey, 2022. 70% Source: Em 40% plRu oye nn e Be ing n e ou fit t Res of M ea on rce h y Institute Retiree21% Reflections Survey, 2022. 30% 6% 3% W hen asked to reflect upon their preretirement financial worries, responses varied w 85.9% ide 33% ly. However, the most cited 90.0% y ears respectively, as of yeH airg-h e nd sch20 ool21 gr. ad Sur uatv eey respondents w 91.6% ere 45 percent male and 55 13% percent female. Seven in ten 93.1% 92.8% At the same time, 1 in 5 Do (19 yo p ue fe rc ee l nt the ) va re65% lue tire yo es h u rece aveived not fro idm ent using ified a t nhe adir visor finaonc utw iae l igh goa ed ls th fe or co re st? tirem 94.4% ent. When p 94.1% rompted revealing a need for improved communication. concerns were not saving enough for retirement, unexpected medical expenses, and preventative health expenses College gradua Ma ter k(e 4t V -yo ela ar ti ld ity egree) 33% 27% (70 percent) reported being married or living with a partner, and 22 percent reported being divorced, separated, or <$500K a bout • why Ma tny he y re ha tirv ee e snot don’ ide t ha ntifi ve e d a fin foram nc aia l fin l ga oa nc ls ia , l op pla en n for -end 55% red et irre em sponse ent. Only s range 4 in d 10 from ( 23% 42 la p ck eing rcent know ) retle ir 22% d eg ee s su , ge rv ne ey re ad l had 40% 40% A dvisor Use and Satisfaction 60% Figures 40% ( Figure 18). Some college/trade or business school 36% widowed. procrastination, Un no exp pe e cr ted ce Non ived -M ne edice ald E , m une ergen xp cye E cx te ped n se ev sents such as health issues and 28% bereavement, and desire for both identified financial goals in retirement and developed a written financial plan. Retirees report various 4% Nine out of ten (91 percent) retirees with a financial plan created by a financial advice professional reported satisfaction Graduate degree or higher 24% A mong those who would have changed financial habits, respondents provided open-ended responses for what financial Did Not Work With Advisor on Financial Plan Re spont tirea ene s rw ie ty ho a sons ( Fw igur o rfor ke e d 8 not )w . it Se ide h a ve nt rfin a ify l r aing nc etir iafin el a ea s int dnc vic ia e el r p p grr oa e ofe tls ed ss in r w iona or etk ir 48% l o e for m n th epnt aey , ir inc in fin rlud a enc tir ing e iam l p la ent la ckn for a of 19% s a k now rsu etb irst le em it dg ut ee nt e , a for w de m r 33% ide e it ta e nt sk dify e pd r ing oc to rfin a rst ea cina a nc ll ia tion l , Figure 1, Survey Sample, Key Demographics ........................................................................................................... 5 50% Day-to-Day Expenses 19% For those who are in retirement, inflation was the most frequently cited financial concern, identified by more than half with their service (Figure 9). Two-thirds (66 percent) reported being extremely satisfied, and 1 in 4 (25 percent) were Financial assets are defined as the sum of liquid assets, including the value of stocks and mutual funds; checking, 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% habits t 30% hey would have changed during their working years. Figure 17 shows a selection of open-ended responses p gr oa acls tic for 30 e% fe re attir ur ee m s of ent. the ir advisor. About half (47 percent) recalled their financial professional was a registered and unexpected events that were competing priorities. Work for pay is not the only type of work available to retirees, as 23 percent of our sample reported they are currently (54 percent) of retirees (Figure 19). Emergency and preventative medical expenses continued be the second and third somewhat satisfied with the financial advice professional who helped them with their financial plan. Only 9 percent of Making Sure My Spouse Is Financially Secure if I Passed Away Military Status 15% Fi sag vur ings, e 2, aL nd abo m rone May rk m eta St rka ettus ac , cSe ount lf-Re s; c por ertte ifidc ................................ ates of deposit (CDs), ................................ government savings b ................................ onds, Treasury bills, a ........... nd 6 I Don't Know, 7% relative to saving, discretionary spending, investments, and relationships. Overall, 3 out of 4 (72 percent) wrote they 17% While the su Wr ork ve ey d W sa ith A mp dv le is or on con Fin sist an ec d ial of Plan retirees with at least $50,000 in financial assets, nearly 4 in 10 (38 percent) did invest • 40 m % eW nthil ad e vnot isor sa , avnd ing 30 enoug perch for ent r erc ea tir lle ed m teha ntt, tune heir 40% xpe adc vtis eor d m wead s a ica l e fiduc xpe ians 24% rye ( s, a Fignd urep 12 rev ).e E nt va etn ivt e 36% houg healt hh e retxpe ireens s e ws ho w ere doing volunteer work and another 36 percent said they are considering it (Figure 3). Four in ten (41 percent) retirees Large Employer: > 5,000 Employees Medium-Sized Employer: 501 to 5,000 Employees most frequently cite 36% 23% d concerns, but “running out of money” — the corresponding response to the “not saving enough” retirees reported neutral positions or dissatisfaction. The high satisfaction rates may be driven in part by the sample’s Never served in military 82% bonds and bond funds; and other savings. In terms of financial assets, 64 percent of the sample had between $50,000 Whether You'll Be Able to Leave an Inheritance 13% w Op ould en- eha nd ved e sa su vrevde y m ror esponse e or sas p ved r ov eaide rlie a r. uni Apq pue roxim windo ately w 1 in into 10 top (-12 of- p m eind rcent issu ) ceom s for me rnt espond ed on etnt he s. ir W spe hilnding e ope n b-eeha ndved ior Yes , 88% 44% 0% Fi not gur consi e 3, dD eo r tYhe ou mD selves o Any tVolun o havt ee e ar n inv Wor ekst ?m ................................ ent portfolio (Figure ................................ 21). Of the 63 percen................................ t of retirees who repor ............... ted to 7 worked w the ith a top n a fin dv ais nc or ia rl c econc allee dr ns va rpious rere fe tire e m ste ruc nt, tur infl es, ation is th an overw e he most lming freq mue ajnt orly ity c (it88 ed pfin era cnc ent ia )l c sa onc id te he rn b de ur ne ing fit of said they are not considering doing any volunteer work. Reflecting the importance of meaningful effort in retirement, 1 response asked relative to preretirement worries — was cited by one-third (33 percent) of the sample. W Dihil d No e t inf Sigla ntion $50,00 200 %financial asset minimum, since advisor use is generally correlated with household wealth, as well as On active duty in the past, but not now 17% and $499,000 in assets; 22 percent had $500,000 to $999,999; and 14 percent had W $1 as,000,000 or more. The average Small Employer: <500 Employees Self-Employed d re ur sponse ing the s ir c aw n b ork eing diffy ic eult ars t, o wchil om e p13 ar ep, etrhe cese nt “ spe in tche ific ira lly ow not n weor d d m s” od re ify sponse ing inv s ep srtov me ide nt d be etha ail on vior r sent elatim ivee nt to a ta nd x-d op efe ini ron red 20% 30% Spent Made Me Did Not Me up for have an investment Do Not porHav tfolio e a Fin , ov anc eria ha l Pla lf (5 n Ho 7 p usie ngr Cos cent t ) rebalance the 12% ir portfolio. working r w eit tir h a em n a ent d, vis ide ornt out ifiew de b ighe y md or te he tha cost n ha (Fi lf (5 gur4 p e 13 er)c. 51% e nt) of current retirees. In a 27% ddition, approxim 22% ately 1 in 3 Explained Had My Best Transparent in 3 (31 percent) retirees reported actively working in full- or part-time capacities or volunteering. and spending are tightly related, the rise in concern over inflation between preretirement 1% and postretirement indicates survivorship bias and retA ir de eO e qua na lte yg e on nc ay c, tiv m e e da unin ty fo gr Un ttha ra de in tr is n a too g r ie d nt ir the ee R in our eserve ssa orm N A p a war le tio e o m naa fl y G u ha arv de experienc Pree ss d ure dis Me satisfa Prc odu tion cts in a Figure 4, Employer Size (Among Those Retired From Prior Career) ............................................................................ 7 value of financial assets was $522,000, while the median was $250,000. Everyth15% ing in Interest at About Their t aha cctount help s a s inf nd or ass m efut t aur lloc e a lin tion es . of Ap cp losed roxim -eand teed ly 3 inqui perc re ynt . of the open-ended comments reflected relationship-based Time With My Needs Unknown to Make That Did Not retirees remain c Othe onc r erned about health- or medical-related expenses, running out of money, and market Other 11% No, 5% t hat many retirees were not N oew xpe on catc ing tiDe ve or pth du ta ydequately prepared He art for high inflation rate Ps ric . ing 0% past advisory relationship but not in their current relationship. Me Needs Purchases Match My fin A One m aong nc in four 20 ia % t l he dis r t(e r25 e tir ss e p . e eN s w rc ot ea it nt b h a ) lysa , n i E id B nv RI the e’st s ym 2021 w ee nt re p Re offe orttirfolio, e re m de a nt 6 fin in Confi a10 ncia d (e 61 l a nc dp e ve is Sur ror cey v nt eb )ye rne found etir fit e e frs sa tom hat id a Btla phe rcek y v ious a and re m H em is or p pe a loy nic conc e rA . e m Of th re ne ric dose a a ns nd w who ere Figure 5, Years in Retirement Among Survey Sample ................................................................ Structure ............................... 8 Four in t 10%en (40 percent) Ha of ve a indiv Finaidua ncial P ls lan in the sample reported that their previous employer, from which they retired, had volatility. 44% 23% 33% Needs Approximately 9 in So 10 urc ( e92 : Em p plo eyr ec ee Be nt ne )fi t rRes etir ee arc ehs su Institu rv tee Ret ye ire de w Ref ele rce ti oW ns hit Surve e, y, w 20hil 22.e 87 percent rep 17% orted to have a college degree Non-Housing Debt 4% 4 sensit i10 ve % about market volatility in retirement than they were before retirement (Figure 22). Retirees with a financial m we or re e offe likely re d to aa fin gre ae nc w ia itl a h th dve isor sta yt e bm ene ent fit,, “72 He lping perce fr ntie rnds eporatnd ed fa usm ing ily it is (m reor pre e sent impor ing ta18 nt tp ha ern sa centv ing of the for ful rel sur tirem ve ent y .” over 5,000 e Agree mployees. Tw90 ent %y-one pe 93 rc %ent retire93 d % from an e 11% 92 m % ployer wit 83 h %501–5,0086 0 % employee94 s,% and 30 p94 er% cent Respondents were asked to describe what causes concern about their spending. Figure 20 shows a selection of open- To help understand some of the drivers of satisfaction, retirees using an advisor w 10% ere asked to evaluate different or higher. Nearly 1 in 5 (18 percent) had a military background, but the majority (82 percent) have never served in the Figure 6, How Did You Build out Your Written Plan to Help You Reach Your Financ6% ial Goals in Retirement? .................. 8 10% Note: n=1109. Neither AgreP eaying for College for Your Child/Children 2% p sa la m np (le 68 ) (p Fi eg rc ur ent e 14 ) a)nd . The those ovew ra ho ll rw ep or ok rteedd w ait wh a aren a ness dv is mor ay on reflect their ap la tim n ing (71d p iff ee rcre ent nc)e w , w erhe e r m eor bye t he like sa ly m to pb lee’s m conc edeia rne n d, retired from an employer w 5% ith 500 Oor ver al fe 4% l wer employ 4%ees (Figur 5.e 0% 5). The m 10 e% dian amount 9% of time in r 4%etirement 3% for the ended responses across concerns regarding inflation, da49% ily budgeting, and relations 25% hips. Consistent 27% with the previous a spects of their advisor experience. Approximately 9 in 10 retirees agreed that the advisor spent adequate time, nor Disagree military. Source: Employee Benefit Research Institute Retiree Reflections Survey, 2022. 2% 3% 0% Fi in line seve gurn e y w 7, eit aW h th rs in r hee n D ire highe tid ireY m ou e r nt pSt r ob m ara a ty b W ili indic or tyk of ing ate ha W tv ha it ing h T t the m his or b e Fi e ne na finfit n ac nc ia wia l Adv al a s offe ss ic ee r ts a eP dr ofe nd afte ss gre iona ne the rir a l? l a r................................ ew tir ae rm eneent ss of , as w ma erll a kes t flu a ......................... n a ctua watr ions ene. ss gap 9 , 0% 10% 20% 30% 40% 50% 60% sample was seven years, while approximately one-quarter (24 percent) had retired since the COVID pandemic began Disagree 5% 3% 3% 3% 7% 5% 2% 3% closed-ended prompted question, inflation was top of mind for many retirees. One in four (24 percent) wrote that explained everything in de Ha pt vh, e anunde Invesr tm st eood nt Po rt tfhe olioir needs, had their best intere Do st No at t Ha he vea a rt n, Ind vid estm not ent P porre tfo ss lioure to make EB 0% 0% RI was able to fund the development of this research thanks to generous support from Edelman Financial 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% whereby many were offered a financial advisory benefit by their employer but were unaware of it. And conversely, ( Figure 4). inflation caused concern, while another 1 in 10 (10 percent) indicated daily budgeting issues. Again, a minority (2 purchases, a I/M I'm nd y P Pd a arid ytn ing er Cr not Moea re eted nr Tax oll the es the I'm I W m P ork aint yed ing o W Le unn ith ssa Tax Fin eees d ane Than cd ial prod I U I'm uc se P d Re tasy i( ng sFi o urc the gur e T se ax M es 10 ad I e). AI U ga sin, th ed Onl I Don ie n't K e Re sa no m s w op urc lee smay O inc thelude r, PO lea the su ser S rv piv ecor ifyship Figure 8, Open Not -Eende : n=3d 20 , B rea flr er cie ting r s t retire o eD s we hfin o using ed a fFi ina na ncinc al aia dvl G ice poa rofels ss iin Re onal to hte ir lpe th m em e nt cre a................................ te a financial plan. ................................. 10 Engines. Edelman Financial Engine So s, L urceL : Em C is plo yno ee t Be a ne ff fiili t Res ate ead rc hw Init stih EB tute Ret RI ire.e Reflections Survey, 2022. Source: Employee Benefit Research Institute Retiree Reflections Survey, 2022. EBRI Is Than I P E lan sx upe e Bri cted ef is registe A rdv edi c iI E e P n tx h r pe e ofe U cted s.s Si.o P na altent an Ad v a Tr ilab adle e b E m xa y p M rec k y ted O E ff m ic pl eoy . IS erSN: 0887 –137X/90 0887 –137X/90 $ .50+.50 those who werSo e usee rce: Em king ployea e Be fina nefinc t Res iae l a arcd h v Inis stior tute y Ret be ire ne e Ref fitl em ctio a ny s Su pr rvim ey, a 2r 0ily 22. be the ones who became aware that it was offered Source: Employee Benefit Research Institute Retiree Reflections Survey, 2022. percent) indicated family-related financial issues. b ias relative to the retiree/financial professional relationship. Even so, overall satisfaction with the financial advice © 2022, Employee Benefit Research Institute –Education and Research Fund. All rights reserved Figure 9, Satisfaction With Financial Advice Professional Who Created the Financial Plan .......................................... 11 b y their employer and adopted it. Notably, EBRI’s prior research on employers with 500 or more employees found that Note: n=320, reflecting retirees who used a financial advice professional to help them create a financial plan. Note: n=496, retirees with a financial plan. professional who assisted in creating a financial plan was strong enough where 9 in 10 (88 percent) said the value Source: Employee Benefit Research Institute Retiree Reflections Survey, 2022. Source: Employee Benefit Research Institute Retiree Reflections Survey, 2022. Source: Employee Benefit Research Institute Retiree Reflections Survey, 2022. 6 in 10 employers (64 percent) reported to offer employees access to retirement plan representatives and financial Fi reg cur eiv ee 10 d fr , om Expe the rieir nc ae d v W isit or h Fina outwnc eighe ial Adv d the ice cPost rofe . ssional ........................................................................................ 11 e e e e e e e e e e e e e e e e e e e eb b b b b b b b b b b b b b b b b b b br r r r r r r r r r r r r r r r r r r ri. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i. i.o o o o o o o o o o o o o o o o o o o or r r r r r r r r r r r r r r r r r r rg g g g g g g g g g g g g g g g g g g g IIIIIIIIIIIIIIIIIIIIs s s s s s s s s s s s s s s s s s s ss s s s s s s s s s s s s s s s s s s su u u u u u u u u u u u u u u u u u u ue e e e e e e e e e e e e e e e e e e e B B B B B B B B B B B B B B B B B B B Br r r r r r r r r r r r r r r r r r r rief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief ief A re • • • • • • • • • • • • • • • • • • • • s e J J J J J J J J J J J J J J J J J J J Ju u u u u u u u u u u u u u u u u u u u an n n n n n n n n n n n n n n n n n n n rce e e e e e e e e e e e e e e e e e e eh 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1r4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 e,,,,,,,,,,,,,,,,,,,,p 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 o0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 rt2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 f2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 ro m • • • • • • • • • • • • • • • • • • • • N N N N N N N N N N N N N N N N N N N N th o o o o o o o o o o o o o o o o o o o oe .................... 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 561 EBR I Education and R esearch Fund © 2022 Employee Benefit Research Institute 16 14 17 18 13 15 19 12 10 20 11 21 4 8 2 6 5 9 3 7

Retiree Reflections

Retiree Reflections

Volume 561

Pages 21

EBRI_IB_561_RetRefl.16June22

EBRI Issue Brief

June 16, 2022

Bridget Bearden

Retirement