Emp Emp Emp Emp Emp Emp Emp Emp Emp Emp Emp Emp Emp Emp Emp Emp Emp Employ loy loy loy loy loy loy loy loy loy loy loy loy loy loy loy loy loyee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee ee Be Be Be Be Be Be Be Be Be Be Be Be Be Be Be Be Be Benefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Researc nefit Research I h I h I h I h I h I h I h I h I h I h I h I h I h I h I h I h I h Insti nsti nsti nsti nsti nsti nsti nsti nsti nsti nsti nsti nsti nsti nsti nsti nsti nstitu tu tu tu tu tu tu tu tu tu tu tu tu tu tu tu tu tute Te te Te te Te te Te te Te te Te te Te te Te te Te te Te te Te te Te te Te te Te te Te te Te te Te te Testimony o stimony o stimony o stimony o stimony o stimony o stimony o stimony o stimony o stimony o stimony o stimony o stimony o stimony o stimony o stimony o stimony o stimony on n n n n n n n n n n n n n n n n n R R R R R R R R R R R R R R R R R Retirem etirem etirem etirem etirem etirem etirem etirem etirem etirem etirem etirem etirem etirem etirem etirem etirem etireme e e e e e e e e e e e e e e e e ent nt nt nt nt nt nt nt nt nt nt nt nt nt nt nt nt nt Security: Security: Security: Security: Security: Security: Security: Security: Security: Security: Security: Security: Security: Security: Security: Security: Security: Security: Buildi Buildi Buildi Buildi Buildi Buildi Buildi Buildi Buildi Buildi Buildi Buildi Buildi Buildi Buildi Buildi Buildi Building ng ng ng ng ng ng ng ng ng ng ng ng ng ng ng ng ng a Be a Be a Be a Be a Be a Be a Be a Be a Be a Be a Be a Be a Be a Be a Be a Be a Be a Bett tt tt tt tt tt tt tt tt tt tt tt tt tt tt tt tt tter er er er er er er er er er er er er er er er er er F F F F F F F F F F F F F F F F F Future uture uture uture uture uture uture uture uture uture uture uture uture uture uture uture uture uture Figure 1 Percentage of Families With Heads Ages 55 or Older With Debt, wo Conclusi Toda Gi reti retirees were who being thos Secu contrib Still will be nee asven suming rker and rem , t se cash re y, o e Cho day, ution 7 ent ou m on in ploy su e e de ice Sav 10 o r o c etiree nly a very s plan h access d, half c uts are mployed ers’ i tcomes for define hara . The ings Pro n perspe c te sa terize d mos ever r t ys th es con by s o m tth p t da igram have all percentag d as predo ct t tributio n facil y maller c ei ey hre ives o 10 r e maging hav e reaso years m itating ploye e n n o fina a plan mpa becaus ct su , mi th n u es e of defi nantly f cc nci s that eme ally e overa s o nies — ess al se ffer autom but estimat e they fo rg fully tha Black enc only curit emale ned ll m t y im do sav e co if we c e y wo plemente d n d how rfeit , divo going ba ian redu atic ntributio o ings, p rker t o an e an r ffer suc rced, s too nro mu entir o ck m d defa ct edu lici llment, and ch n a ion k a pe es e c ih c nd IRA ncome o loan fro o e in plans re t tha ple ult areer’ co re sts an t han io nvest tiremen prom (I will t f c balanc 76 p s wo h t m o ey hre lor d adm ment optio t ote he wo rth g e , and i es are cur e d t rcent of et ir workpla balan uld adop o e inist in f i cades. to t ne n poo nvest tion ces as red e fer au ative ns he de ren t In the ment gains o c r of suc e ret ach mo hat health, wi tly a mul burdens for tomatic tails of initially ann ire h s 2021 tipl men nth in uitized o why t lutio e th of place n t t plan thes ns, . I h pay at hat is e n e • Net retirement savings surpluses give the present value of simulated retirement surpluses less 9 by Age of Family Head, 1992 –2019 22 age 65 for wo retire Ret contrib was rker sav ire to me men m ution nt. ake su t ings int C ch escalatio ends m onfidence S wo o rkers capita eet n., f w u M o l preserva rvey, ollowed by o uld re t m be han o 54 p re th t tio hre buying e n vehi an 8 in rcent e-quarters o a cle . home 10 s, an wo , car, or o d t f rkers sa 401 hen (k) plans, afid the ter ther a large purc pe y were co rio vering d of 90 satisfi has more tha days e, and payi ed wi , if no ac th their n three ng tion by wo -o quarters o ff cre rkplace tdit ca he w f 4 o rd bil rker 01(k) ls including true employ retirem EBRI’s cash outs relatively low later Is ers. esu nt tho i — e n d B my t eficit t se rief he Retiremen h o th useho es “ s a rUnder oug tim t re o h ld ny tir th fi the ) ement age e nancial ass .t d Se Do efin curi me ed con ty — et Pro ( in current A Clo s. Inde tribut ject ser Lo ion io ed, on n plan Mo doll ok del e ars at Le st -fifth ha ® )ru .estimat gislative cturd e, no financ es co Pro uld an inc pos lead to ial as rals eas Im e in balan wi sets, pacting der co avail mpare ces fo Ret abili ird with 6 ement r th ty of thes ose wo ,”pe e off EBRI rc rkent ers o erings use of fd Policies th The U.S. retir at pro ement mote sys fina tem ncial hasw made ellness a lot of pro initiatives, su gress ch as b in the pa udgst 15 years eting, debt man , thanks in agemlarge ent, an part t d fina o ncial the 2 co 006 aching 90% retirem o plan parti has r c be redit card en ent t cip ak pla a en de nts, in n overa (b such t. Fo clu as w ll. r His de d ithdrawin panic target wo -da rker g te th fe m unds in s, the to oney tp or heir inv thr mov ee reas estmen ing io t ns w tot ano lin ere t eup. ther o Just buy a fund ove ) , the home, car r one ass -quart ets a , or re automat er other l of thar e ass ge ica ets lly in by e 24 its .6 percent Rm etiremen ployers at ret t — Se whic curi irety h co men Pro u tld a jec und tion ls er partial o tak Mo e del press auto porta ® to e ure xamine off co bil re t ity he d . efined co impact o ntribu f having tion ass half et of all 401( s to servk) or e as de fa 403(b) plan cto All 75+ 55 –64 65 –74 through Redu Workers Pension Pr cing Plan t ’ h R o e wor etirem tec L tion eak kplace du en Act ag t C e , as on ring th f well idence as e “ a the h acc nd umulatio Fi ard wo nancia rk of o l Lite n phase ra thers, in cy ” can clu ben di efit ng w thos orkers e in t real his ro time an om. Ho d also wever, there is provide skills more Percentage Who Feel They Do Not Know Who to Go For Fo the EBRI/ICI purcha transf rtunat erred seely, ; to t 4 o a pay o 01( an age PSC k) databas A ff cre s- urvey of ap dit card pro e were inves priate t plan bills or s arg poet nso credi t-ed dat rsin on CAR te fu c tard arge nd. dt ES ebt -date fun A ; ct or p to rods cover me vis , ions and m fodic und th ore al than ex at most penses. half odefin f 401( ed k) participa contributio nts n pl in t an he distribu emergenc tions y sav taken ings during in the f t oime rm of guara s of crisis ntee . d income for life a 81.7% t age 65. Essentially, the analysis examined the Figure 15 Good Financial Advice, by Race/Ethnicity and Income 10 that ca to do. Taking n be carried lessons fro over m to re the tir PP ement A — al to potent ong with 15 ially addr more years o ess the gf evaluatin rowing issu g e of de defined bt c in ol ontri dbution er ages parti . cipant 78.5% Further, databa sponsose hel rs EBRI saw d t ’s limited Issue Brief arget-dat use o e funds. “EB f co RI Ret ronav ire irus ment Se -related curi distri ty Pro butions. jection SMo till,del® (RSPM those who )are en – Analyzi coura ng ged Polic to y an — o d r Des hav ign e no 80% 77.6% Increase in Aggregate Balances at Age 65 as a Result of Implementing Partial Auto Port 77.4% ability, 77.1% change in average retirement deficits by age at simulated death for those annuitizing. As might be expected, for Turnin g to workplace retirement pla 76.3% n leakage, the main 76.3% culprit here is cash outs by employees when they leave Access: The Haves and Have-Nots 76.2% The 2021 Ret 2 irement Confidence Survey also paints a distinct picture of the importance of the employer when it behavio . r — the key areas of weakness by are eas Age and y tA oge identify: a -Specific ccess Incom te o the sys Quartiletem, leakage from the system, and Because of Ma choice bu ny turn t to t th o non e — s trong use t -proheir d e fess vidiona 74.0% ence that efined l sources, co ine ntri rtia bu like tion pr family eve plan nts peopl an as an em d frien e from ds ( ergen 35 mov percent cy sa ing vings ve thei of w r assets o hic rkers and 22 le are out of clea capital pr rly lik percent ely t eservation o of re hav tirees) e an Proposals” shows that the probability of a successful retirement depends to a great extent on whether those who die prior to age 85, there is an increase in retirement deficit. In c theio r mpariso employer n to —which t the highl hey m y indebte ay do 5 d re times betwee tirees in the n ages 25 Spending an in Retireme d 34, if Bur nt ea Surv u of Labo ey, 18.6 per r Statistics da cent of surv ta is any ey 71.4% comes to workers’ retirement confide To what ex nce. tent A do cc yo ordin u agre g to e t or di he Retire sagree with ment Co the fol nfide lowing? nce Survey, characteristics Percentage of Those Who Saved for Retirement Who Took 70.1% a Loan or 70.0% the need for better retirement spending solutions. T o impaired he r go online increasin ret to iremen g do their ow robustn t nes ess t egg. of n research defined c (35 ontributio percent n o plans f workers and has create 25 d an env percent iro on f reti ment t rees) hat . Tur hasning to t both po he sitive and funds — even if that money sits in the funds for many years and the individual has a very long time horizon — a Neverthe employees ar less, i e e n ligible EBRI’s to p Issuarticipate in e Brief “Impa act wo of rkplace the COV defined ID-19 Pa co nde ntrimic bution on Retire plan. Fo ment In r examp come le, Adequa for Gen Xers, cy: the 14 You do not know who to go to for good financial or retirement planning advice. 70% respo guide. ndent Each y s repor ear appro ted hav xima ing tely long40 -ter percent of m care. These termin “lo ated pa ng-term s rticecure ipants ele ” retire ct to es prematur portray a life in retir ely cash ouement t of their that Figure 14 66.4% associated with retirement confidence include having a workplace retirement plan: 83 percent of confident an Early Withdrawal, by Race/Ethnicity Total: Workers n=1,507, Retirees n=1 3,510, Percent Agree employer or Ret negative iremen aspects. t Swo ecurity: rk for info On Buil the d o rmation ing a Bet ne hand, on te de retirem r F fined co uture e nt ntri pla bution nning is relati Figu re plans 65.2% 5 arvely less com e in 65.0% creasinglymon: just being a ve over nue for o 1 in 5ffering workers policy that changes the forced-out safe harbor default so that money remaining in capital preservation funds Eviden Retiremen ce fro t S m ecu EB rity RI’s Reti Project remen ion M t o Se del cur ®ity estima Project ted th ion Mo at thos dele w ,®” ith weno find future that y abo ears ut of eligi 4 in 10 bili wo ty rkers are pro in a workplace jected 68.4% 68.0% Emergency Fund or Employee Hardship Assistance Programs is comfo We k defined now c rtabl o tn ha 45% tre; stable; t ibuti the bigges o 30n % plan secur t gap whe —and thes e and even n it e a c re m o luxurious; an mes t ainly o ac younger ces d fille s to wo worker d with fl rkpla s with ce exibi retirement listy, opp mall ba o plans lies lances. A rtunities, an nd the with small d options cost is busin . Th higih. In s esses workers report that their employer offers an employer-sponsored defined contribution plan, compared with 69 repor financial w Some Sol t this as ut ell ions ness a so ini urce tiao tive f info s (more on rmation, te h ven tho at later). ugh On 73 percent the other han say they d, defin are sati ed cosf ntributio ied with the n plans ed are beco ucation ming Impact of Guaranteed Income for Life on Retir65.4% ement Deficits 41% Among Those Offering or P6l0 a .6n %ning to Offer Emergency Fund after 90 days is transferred to an age-appropriate target-date fund, similar to what state programs like Illinois defined to fall sho co rt o ntrf what ibutionthey plan n hav eed e only a 4 i 40% n retirement sa 8 percent vings pro — bability resultin of g ha in an ag 40% ving enou gregat gh money e retire men in ret t defici iremen t t. acro In contras ss all U.t, S. 63.4% 63.0% i coho that do ts Issue Br rt h n’t ha as ie m 60 f% ve th o “re so The eI wher urces of mpace t o withal or res f Auto Po — often sta rta oble bilit urces t — y on inc o Preserv off om er t e: Long radi ing Reti tional -term re defined secure retire ment Savings contres were ibuti Currently on plans. considera Lost to 401( Solutions bly more like k) C suc as h as h o ly ut percent of l 40% ess confident workers. Six in ten confident workers report expecting a workplace retirement plan or Employe 57e .0 % Hardship Assistance Programs Goo ripe for be materials t d Mornin ing hey rec g. viewed Thank 37% eive as de you on tto Cha heir workpla facto emerg irwomc an Murr enc e ret y sav iremen ay, ings Ra t s vehicle nking Mem avings plan. s. ber Burr, and Members of the Committee, for FOR THOSE WHO UTILIZE THE PROVISION 36% 36% Secure Choice have in place, could result in a better alignment of individuals’ asset allocation within their rollover thos house who eholdshav ages 35 e 20 or mor –64 o 24f .6e years o $3.68 % trillion. f future e ligibility in a workplace defined contribution plan (this may include 35% 15 54.1% 25% 58.5% Thinking about your workplace retirement savings plan(s), have you ever...? toto be a major source of retirement income, vs. just over a third of less confident workers. Leakage to report PEPs may ser ,”hav 35% EB ve as ing RI a est 53.8% appeali define imate d d ng benefit o that alternativ in 2015 r tra es. W diti aloo ne, nal hen it $92 pensi .4 cobillion was mes t on plan (7 o ste0 lo mp ming lea st due to l ercent vs. 58 kage eak , a cl ages fro percent of ear area m cas ty o pic h f fo o al re uts, custirees). And is cash outs 33% Expan inviting me ding to Acc testify on ess to Wo the impo rkplace S rtant avin 53.0%gs topic Plan os f R etirement Security. The events of the past 14 months— 32% 32% 56.0% IRA and their time horizon. years in which employees are eligible but choo Savse no ed fort ret to irem participa ent n=2 te) are simulat ,050 ed to have a 72 percent Offer Plan to Offer in Not Planning to Offer, Not Planning to Offer, Not 30% Sure 30% Which of the fo 54.0% llowing people or groups do you use as a source of information for retirement planning? 21.0% 20.8% 21.0% they ten representi upon employ ded ng a to ment ter serio have more us pro mination, blem that sources along o aff f inco with ect me s improv the po generall ite ng ntial y and les the existi of 401( s reli ng k)fo plans to ance rce-o ou nt Socia pro safe harbo duc l Se e adeq curity: r an uat d he 59 e i percent said ln ping come emplo they yees 30% Average Retirement Deficit Reductions by Age at Death From Assuming 50% of 401(k) inc Going ba Emerge luding ncy S ck to pan 50% avings demic the “h -an relate avd es DC Pl ” a d job los nd an “h save s, increas nots” when ed careg it co iving needs mes to work , and heigh place retirem tened stress ent plan a —hav ccee ss , , amo in a surve ng othy of er Next 1 –2 Years but Interest 51.9% ed and Not Interested 51.4% 51.5% 2021 Workers n=1,507 probability of having 20% sufficient money in retirement. In other words, merely having access to an employer- 40% 49.8% Balances Used to Purchase Single Premium Immediate Annuity at Age 65 at Annuity 18.3% • 27% of all firms offered an had perso replace with emerg things, highlighte ment nal ency in ret retirem sa d the ir vings. ement ent ne sav F ed inally, as . ings (compa for saving mos and fina re and red with 51 mo nci re ap l secu p riva ercent of te ri-ty sector . typi wo cal ret rkers rely irees), 46 percent solely on thei re r defined ported an Wisma Finally, in thdrawa ll b ls Fr usines om t h A 25% ft e e area of ses r-Tax wit Retir h an e le meaka nd t without ge, I’d like to retirement pla address the ns emergen conductecy d by sa t vhe ings issue I Main Str o eet utli Al ne liance/ d abov Americ e. One way an that the 44% 24% 19% 11% PurchaFu se ndPrice Based on Historical Average for Discount Rates; Excludes Bem ala ergency nces Le fund ss or employee sponsored DC plan increases th 34% e chance that workers will have enough money to sustain themselves in EBRI Retirement Security Projection Model® Methodology 35% individual Going ba contribution ck retiremen to as the their only Retire t acco me wo unt nt rkplace Co (IRA) (v nfide re s. nce Survey, tir 38 percent ement sa jus vi of typi ngs plan, t over cal retire 4 in ther 10 e i es) los a n w , -36 percent re inc eed ome to ( sharpen earning ported a wo les thei s th r financial an $35 rkplace ,00 skil 0 p ls er 15.1% 15.0% existing e Sustainable mpl 20% Busines oyer-bas s C ed oun defined cil, 64 p cercen ontribution t of respo sys 14.8% te nd m ents c is increasin ited cos gly b t as the eing leve larges raged is t barrier to fa to of cilfering a r itate overa etirement ll Paid Time-Off Donations or Leave Who ar 40% e confident workers? They are more likely to be… hardship assistance program. Than $10,000 15% 38% 26% 24% 9% 41.3% retirement by 50 percent. Sharing year) The Em ind ploye ividu e Benefi als whot Resear are $5,00e 0ithe ch r wor Instit kiut ng e or retire ( Fam EBRI) ily a29% nd f is d say they a ri n 40.3% end Figure onpartisa s 2 feel n, ta they x- exempt hav 29% e eno organization ugh savings • 29% cto rplanned eated handle itn 1978 o an offer this for the 35% retirem around e de nt bt, sav and fin ings plan d way (compared s to help the with m 30 percent spend dow of typi n their re cal retire tirement nest es), and 30 p egg more ercent report confident ed ly a . product that employee savings plan. 30% financial wellne Another surv 28% ss ey, by the . The 202 Sma 0 EBRI Finan ll Business cia Ma l Well jority i being E n Illinois mploy , fo er S und urvey: COVID that of the 70 -19 percent of s Driving Benmall efit 15% 38.5% One of the basic objectives of RSPM® is to simulate the percentage of the population at risk of NOT having benefit. Employee Relief/Compassion Fund Impact of36% Future Years of Eligib 31% ility for a Def 22%ined Co 8% ntribution emergency purpos e of co or sudde ntributin n larg g toe e sox und pense. em plo And yee b , whil enefit e two p -thirds of rograms and middle publi -inc come policy thro ($35,00 ugh 0 to $75, independent, o 000 in hobj useho ective, ld 401(k) Plan Options When Employees Leave their Job 17 guarantees monthly income for life, such as an annuity (compared with 23 percent of typical retirees). They $4,000 Offerings an businesses th 10% dat do no PoO tent nline ially t reo soffe F urce o r plans, rcing s and r Tough ese 27 p arch y e Budget rcent c ou do on Decisi i y ted a l our owo n ack ns o is a surv f adminis etrative c y of larger e apacit mployers y and 14 tha percent t identifies cited tc ho e st as TM 35% retirement income to ade 10% quately cover average expenses and uninsured health care costs (including long-term- 25% 23% 23% 30% Plan for Gen Xers on 2014 Retirement Readiness Ratings Thank you for all you 31.9% have done to improve the retirement system over the years. With your support and 7.9% 22% 31.2% inc fact o-me bas annu ed really sea Payr ) rch ind oll Ad and ividu vance education als report . We that they believe can ha that retireme ndle an emer nt, hgenc ealth, and y expens financial wellbei e, only 44 perng cen btenefi of su ts serve ch Black 21% 12 24% 27% 22% 26% 7.3% • Among those who already offered 7.0% 7.1% were also likelier to report having retiree health care (14 percent). types of fina the reason for do ncial ing well so bein . Si g ini mply put, s tiatives th mat t aller c hey are of ompani fering or e es often cann xploo ring. t aff ord to offer traditional DC plans or 20% may 5% 29.0% care costs) at ages 65 or o $3,000 lder throughout retirement in specific income and age groupings. RSPM® also provides 28.4% Under current rules, wo Arke persrs ona have a n l, professiou nal m fber of op inancial advti iso orns regarding their 401(k) balances when they SAVINGS 27% DEMOGRAPHICS MAJOR an emSOURCES ergency fund, OF they offered persevera 20%nce, we can build an even better future for America’s retirement security. Americ key Shofu rt-Te nctio ans rm L re ons: anpor s Th These rt outh gh P is. progr a yroll ams support the security and well-being of U.S. workers, retirees, and their families; 24% 26% 19% 28% 80% 25.0% 16% lack the capacity to ad 5% minister them. Deduction, Th0% rough a Third Party an average of 3.5 emergency information on the distribution of the likely number of years befo 15% re those at risk run IN15% CO sho ME rtIN o f money as w RETIREMENT ell as leave a job: They may be able to leave the money in their former employer's 401(k) plan, they may be $2,000 82% Have saved for retirement Unfortunatel 20% y, this 70% coho Married rt is likely to 14% shrink. According to estimates in EBRI’s Fast Fact “P 14% utting Numbers to the play key roles in many employers’ coY mp our ensa emplotion and yer/work info talent strategies; and r22% epresent significant portions of the Not surprisingly, in All2020, White emerBl ge ack ncy sav Hispanic ings hel All p w White as top of mi Black n Hd for many ispanic All survey respo White Blackndents. The Hispanic most 15% 13% 2.1% 2.0% 2.0% benefits in 2.0t % his category. They 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 12% Low-Interest or Interest (vs. -Fr 40 e% e L leo ss c ans onfident)23% 24% (vs. 45% 19% less confident) 30% Percentage Who Agree They Have Enough Savings to Handle an the percentage of preretirement 70%compensation they will need in terms of additional savings in order to have a 21 60% From workplace able to move the money to a new employer's 401(k) plan, they can roll their money into an individual Less than $35,000 $35,000-$74,999 Copy $7 righ 5,00 t © 0 Em opl r oy more ee Benefit Research Institute 2021 U. S. economy. were also planning on or Shifting Private Onl -iSe ne ct adv or ice Ret or a iremen dvisors that t Lands provide cape guidan ,” ce th ba e pe sed rcentage of private-sector wage and salary workers common The recently emergency passed SEC fun $1,0 URE d 00pro Act re gram emp cognize loy d ers repo this and c rted rea oted an ffering w alternative: as withdrawa Pools fro led Emplo m after yer Plans -tax retirem , or PEPs ent . Source: Employee Benefit Research Institute estimates from the 1992, 1995, 1998, 2001, 2004, 2007, 2010, 2013, 17% 2016, and 2019 Survey of Consumer Finances. 0% 10% retirement plan 32% Graduate or Professional Emergency Expense94% , by Race/Ethnicity Currently saving and Income on formulas interested in offering an additional Earned Wage Access 22% 21% 20% 34% 50, 70, or 90 perc Source: Emp e lont pro yee Benefb it Res ability earch Insti otute f re and tir Gement in reenwald Resea com rch 2021 e adeq Retiremenuacy. t Confiden ce Survey. retirement account (whic Lowe h st may occ Income Quartilur au e tomatically Second Income Q if the ba uartile lance Third In i cos sma me Quartill), le or th Hey c ighest an Inco c meas Quh art out of ile the participating solely in a defined benefi 60% t plan decreased from 28 percent in 1979 to just (vs. 1 pe 38% lercent in ss confiden 2019. t) (vs. 84% less confident) PEPs funds ( build 44 per offcen of the M t), while p ultipaid le E -tim mployer P e-off dona lan (M tions o EP) framewo r leave sha rk that ring (38 percent) allows different was the employers second mo to ost lik ffer a sin ely gle Represe Degree ntatives from your workplace retirement plan Copyright © Employee Benefit Research Institute 2021 $- 3.1 emergency fund offerings on Em ergency Savings Vehicle Via Payroll 16% 25 –34 35 –44 45 –54 55 –64 5% (vs. 17% less confident) EBRI’s The Retireme retirem miss ent io sys n is t nt tem Co onfide produ altoget nce Survey ce and her. 20% c Acc o also m omu rdi finds tha n nic g to a ate 31% indepe Mar t many peopl prov ch 20 idenden r 19 Alight r t, objec 24% e struggl teport stu ive, nonpa e20% withdyin ho rtis w to fin g an data, res post-d termin trusted earch, and ation sources o oth f er average. 4 54% No debt problem 39% From personal savings or Correspondingly, the percentage participating in solely DC plans went from 7 percent to 41 percent. The 401 curren (k).tly In this wa offered feat y PEPs Deduure. T ctio co n mbine con he least lik tri ely butions fro emergenm cy many wor fund or emplo kplaces int yee hards o a si hingle po p assistance ol, even pro as grams partito be cipants Copyright © Employee Benefit Research Institute 2021 VanDerhei and Copeland (2010) 50% describe how households are tracked through retirement age and how their $(1,000) Percentage of simulated 75% Employed To wfull hat ex -time tent do you agree or di (vs. 2s 4ag % lerss c ee onf wiith den the t) following statement? investments financial info rmation a help. Four i bout employ n ten wo ee rkers and benefits. We serve t 2 in 10 retirees he pub say they lic, empl do on’t k yers,now service who pro to g viders o to for , wo financial a rkers and nd their Financial experts or gurus in the media 16% distribu 0% tion behavior over 10 years, 40 percent of all terminated participants make the decision to cash Sidecar or Rainy Day Accounts percentage with both plans went 13% from 26% 10 percent in 19 25%79 to 8 percent in 29% 2019 af 8% ter peaking at 16 percent in offered were the relatively new s life-paths that idecar or rainy day accounts (1 ® 3 percent) and emergency savings vehicles via contin Further, ue to the h inci ave i dendivid nce of ual acc credit card ountsde asbt they do increased in tra fo diti r families wi onal emplth oyer heads -spo ages nsored both defined 55–64 co and 75 or ntributio old n plans er in . (vs. 56% less confident) Source: EBRI Retirement Security Projection Model, versions 2913 and 2922. (vs. 22% less confident) retirement income/wealth is simulated for the following components: You feel you have enough savings to handle an emergency or sudden large expense will not run 40% 57% Calculated how much money families, retirem e and po nt planning adv licymakers $(2,0 ice. 00. ) This Nmight ote: 40-yea ev r timen be e horizon. more true for minorities. Black and Hispanic workers and out prematurely, accounting for 15 percent of all terminated participants’ plan assets. That study also Copyright © Employee Benefit Research Institute 2021 1985. The dramatic sho and c Wor rt of mo kers o ney ntinu n=1, Chur 65 in 5 ch –0 70 g 7 /r, shif eRetir ligiot us 70 o ees n= – ce f private 75 nters1 o ,5 r75 l1 e - – 0 a sector wo 80 , de Prercent s 80 –ag 85 rker 6% e Str plan c 85 ongl –90y oor Somew vera 90g –95 e from DB ha95 t A –100 gr t ee o DC 100+ has implic Overations all payro 201 This 9, and ea pote ll dedu ntial c ch tio ly ag allo n (20 e g ws ro pe su mall emplo r p cent). In o of family hea yers therds exp words to have erien , eme redu cr ed c genc ed an cos y upturn sav ts, ad ings vehic ministrative in the media les mos burden n c t re com dit card 32% and monly From DB plan fi debt hel duc come iary in dutie d in the fo 201 s— rm of 9. In all of 33% Expect retirement age will be is needed to live comfortably in Q18. Which of the following are or will be offered in your company's emergency fund or employee hardship assistance program? (Offers or plans to offer emergency fund or in retirement retirees are mo re likely to say they do not know who to go to for good financial advice than their white (vs. 19% less confident) Retirement Savings Shortfalls employee hardship program. n=140) 30% • So found cial Secur that pa ity rtic ipan <65 ts with lower balances tended to cash out much more frequently — up to 80 not only for future retirees who $ m (74)ust mana $(876ge their ) $(61 own drawdo 7) retirement $(532) wn strate $1,014 gy during re $1,831 $3tire ,140 ment but $4,027 also $985 for alrea typical dy ret -avire ailable mon es. The retire ey/funds ment lifestyl . However, e they em portray ergency s is fra avings vehi ught witcle h challeng via payro es, ll d unc ed er uctio tainty, f n was rustra the emerg tion, an enc d ty he fact, famili which coul 90% es d make with heads it far eas ages ier for the 75 or old m to er had si offer suc gnifih cant plans gro to wth thei in both r employe media es. n housing - and median credit card Libraries or community centers* 85% Copyright © Employee Benefit Research Institute 2021 (RS 5S) Reduction 6% 84% (vs. 9% less confident) As the counter U.S. parts. employee benefit system has evolved, so too has EBRI. We continue to research existing programs, (vs. 21% less confident) 34% From an IRA 81% percent when savings are less than $1,000 and remaining at levels over 50 percent until balances ® employers, providers, and policymakers 20% as they navigate this seismic change in the retirement equation. sa Un sens debt in vings vehicle tha de e t r the fu S ha 2019. ourt cet : Ta h ElB ey are barely l auto porta ke RIn R a e tLir ot ea m n e emplo fn rto S m ecu bi the ryers were hanging ility t y pla Pro n sce je (the ctionario n on. M To mos ad ke e l, where n ve at H rlike si ao rn d sh 3ly 5ip D 6 the be t 8.o ist pl ribu an t nefits tiono off Tao kef au er n an to the to porta Early Wir it emplo hdr bili awa ty l fry w oees in the m ould Tapote ken so next one me ntia Oth lly acc er type to rof ue to two years (vs. 16% 77% less confident) 80% 70% Excellent/very good health • designs, Define and d contribu practition (D ces while als C) balances o focusin g on emergi Other ng trends and policies. Accelerating changes and 4% 38% Personal savings or EBRI examined the impact of widening access through MEPs in its Issue Brief “How Much Copyright © Em Mo ployee B re Secure Do enefit Research Institutees the 2021 borrowed amount is paid back from the plan (a withdrawal the plan (a withdrawal made withdrawal or distribution surpassed $10,000. Under current rules, balances of 71% less than $1,000 may be cashed out by the (vs. 35% less confident) ( anyo 31 percent) ne at job . Sidecar change or rainy day a (not just those wit ccounts h balan — wces un hich may be der the $5,0 attached to 00 indexed or of t fered hresho through ld), thos the existi e currentl ng d y 2 efined 5–34 © Employee Benefit Research Institute 2019 investments for retirement $250k+ 10% uncertainties 70% wi in the th interebenefi st throug th sys payr tem oll make made be our wo caus66% e of ark mo heavy are rele nd be va fo nt re th agean ever. 59 ½ that yo We u produce t OT ime HER ly and r 13 elevant Spending in Retirement Unfortunately, this struggling retiree cohort is likely to grow. Based on data from the Federal Reserve’s Survey of Families wi SECURE Act M th B ake Am lack/African erican Wo Amerkers: rican or To pr Eviden Hispa epaN rce Fro e onic ne for reti ohea f the m reme ds had se EB nt RI’s Reti , havmu e yoch higher u ( remen and yot urSe sp de cur ous be) tity -…? toPro -asset ratios jection Mo than del. families ®” We with 17% employer w 50% h Expect en employee to live to age Per s termina centage 85+of te; bala Privatence -Sector s of $ (vW s. 1,0 age 9% le 00 to $5, ss c and onf Sala identry )000 Workers may be Par “f ticip orced ating out” into a safe 61% • Individual retireme dent duct ac ion) count (IRA) b imm ala edia nce te fina s ncial need) typically pay a tax penalty for) contrib in Fo t r th he o low ution se wh est plan o inc die o me — aft w quart er ag ere cite e 85, howev ile are d by pro 26 p jec eercent of e r, the pur ted to experi cha mployers se of ence a single a 35.5 as sop met premium i ercent in hing that crea m mediate ann they planne se in balance d uity to of s at ret wi fer in thir 50 p ement thercent e n . ext research and analysis. Our work supports employers, policymakers, service providers, and others in developing (vs. 33% less confident) 12% got a promotion since in an Employment-Based Retirement Plan by Plan Type, 1979 –2019 Workers n=1,507, Percent Yes 60% 0% bas white, no Consumer Fi ed ourn fi -Hi n nances (SC dings on spanic heads. seve F), EBRI’s ral industry Further, Issu the e B st rief debt o udies tha “Wf ho Is tht e fa re Mo por milie st Vulnera ted s wi ado th m ptble ion o inority hea tof MEPS the Tic ds king by emplo is more likely Debtyers Time Bo ranging the mb result of in from 7.3 harbor IRA by employers upon worker termination 0 . 1-9 Copy 10r-i1 gh 9t © Employee Benefit R20 es or m earch I ore st nstitute 2021 I want to conclude with a discussion of financial security in retirement. This is an increasingly important area of o of th ne to e 401( two y k) ears or 403( . In ot b) acc her words ount balan , emplo ce pro yers ar vides e credu onsidering ways ctions in avera of leveragin ge retirement d g the exis eficits Feb. ting i . Fo 1 nfra r th 2020 structure ose who of die Copyright © Employee Benefit Research Institute 2021 innovative so Sourcluti e: Emo plns and oyee Benefi ma t Researc king h Ins tipolicy a tute and Greenw nd des ald Researc ign de h 2021 cisions Retirement C . onfidence Survey. 57% Household 45% income $100k+ 20 1 RRR 48% RETIREMEN 55% T PLAN 67% 72% Ret In s • Define ire hort, poli men d be t: c F nefit ie amilies s tha (DB t supp w ) an ith nuiti ort solut the es Ol and/o dest, Bl ions that r lump ack/African re -sum duce o d A istributions r e meric limin an, a ate nd His cash ou panic Fa ts from m workplac ily He (v ads s. 5e % ”le retiremen ss c fo onf und the ident)t pl shar ans can e of percent i consumer n on 50% debt, not e study housi to as ng high debt. T as 66 his per is troublin cent in ano g btecause w her. At the hile fa median, on milies can e s b tudy uild fo weal und tht thro hat betwee ugh n 31 and 45% (vs. 18% less confident) 44% focus for the retirem 43% ent industry, plan sponsors, and policymakers as more individuals enter retirement. EBRI’s between ag payroll dedu ec s 85 and 90, tion or define the d c av on erage r tribution plans etirement defi in ordcit er t dec o h relp wo eases by $1,0 rkers with 14 emergen in current cy dolla savr ings going s. The red forw uctioard. ns in The Success of Auto Features 40% 40% 83% Employer offers DC plan 56% ability to save for Americ 33 percent improv homeoe an wners ou fa of employers tc milie omes, hip, they s wi es th h pcan ec w eads ially for low not thr ith ages 55 few oer tha ugh er co o-r older wit wage n 500 e nsumer d work mploy h eb er debt in s who are t. ees Finally were l creased c , fam m ikely to ado ore l ilies wit oik ntinuousl ely h to c pt m M iash n y fro o EPs if suc rity h out th m 199 eads ei h pl 8 t r , p smalle hro ans artic ugh were made r ularly bal 201 an 9. th ce Th osse as e 40% 18 40% 52% Men Fast Fact “A Tale of Three Retirement Lifestyles” notes that in the third quarter of 2020, about 28.6 million A The The St av s I starte erage ret extent ate o d o to ir f the Retir ement d ut which d noting eficit efine eme , a majo s increase su nt d c Sys o r step ntribu tem fo tion rwa bstantially fo plans rd for bec workplace (o vr th s. me 69% od le se who e fac ss c defi onfto e idn e die ed nt)mergency sav con at later tributio ages: $1,8 nings vehi plans31 fo cam cle e r th s wit will oh se who ul the tim 20 ate die 06 ly have Thought about how you will occupy your time in • Net housing equity. retirement not impacted by (vs. 43% less confident) ® 201 they 9 level chango e f jobs. 68.4 perc ent was nearly 15 percentage points higher than the 1992 level 51% of 53.8 percent and 5.4 with His widely availa panic ble. heads Sourc, were e: EBRI Reti re more like ment Security Pro ly je t ctio on have d Model Versioebt pa n 1995. yments more than 40 percent of their income. 94% retirement Contribute to DC plan COVID-19 Pens I want Ba a pro by Bo ion Pr fo tund o o star mers 30% oitec mpac t by tion — t t thos han Act on e bo king wo , wrkers’ hic rn between the Senat h crea retirement se ted e HELP 1 sa 946 fe harbo Co and 1964 curi mmitt ty. EBRI’s rs for auto Figu ee — fo re repor r the Is 21 featu sut e goo ed t Brief res such d work the hat they w “CARES A as auto y er ’ve done i ct e out : mati Implicatio of th c en impro nr e la o ns fo llmen bor ving r R force du t, e cont tire the U.S. ment ribution e to between 90 and 95, $3,1 Note: The valu40 fo es in this fir th gure re o pse w resent thh e po erc die entag b es oetwe f simulatee d n 95 and life-paths that wil 100, l not run s and $4,0 hort of money in re 27 f tiremeo ntr th assumo ingse who that 100 perc die ent after age 100. 35% 41% Have an advisor Part of the reasons cash outs are so high is that a cash out is often the easiest way for a terminated participant of simulated retirement expenses are paid. (vs. 83% less confident) (vs. 38% less confident) percentage points higher than in 11 2007. This increase in the incidence of debt has been driven in recent years by Median Debt-to-Asset Ratio of All Families and Families with Heads Ages 55 A household is considered to run short of money in this model if aggregate resources in retirement are not (vs. 15% less confident) Secu escalatio retirem rity eo nt n, a f A sys nd t meric tem aran over get Workers -dat the funds e years. ” quan . Beha tifi vio es the po ral finance tent research ial impa has demons ct on the futu trate re retiremen d that byt har sec ness urity of Am ing peopl erica e’s n retirement. Yet not enough is understood about how retirees spend their Copy m righ o t ney and, © Employee Benefi just t Reseaas rch I im nstitute por 2021tantl y, why Overall, the impact of using 50 percent of the 401(k) or 403(b) balance to buy a single premium immediate 20% It Fois wo cusing rt on th h noting that is middle part -case icipan scenario ts whos ofe b appro alan xima ces ar tely one e forced -third out o of small empl f their defined oyers ado contribpting MEP ution plan i s,nto EBR an IR I’s A to move money out of their employer’s plan. In contrast, under current rules, rolling over money into your new 69% parents had or are or Older Having Debt, by Ra 58% ceHave /Ethnicity DB plan of the Family Head, 2019 30% the families with heads ages 75 or older. For this age cohort, the share having debt increased from 41.3 percent sufficient to meet average retirement expenditures, defined as a combination of deterministic expenses from wo natural rkerstende when le ncies gislatio towa n, rd such as inertia,the C ment ARE al acc S Ac oun t, p ting ermit , cognitiv s use of d e dis efined sonance, e contri tbution c., it is plans possible t as em o impro ergency ve they spend the way Esthey tima ted do. ho Fur w m ther, r uch iece ncon me t resea you (and rc (vh by s. 27y % o E le ur ss c BRI onf has iden found a t) great deal of heterogeneity when it annuity at age 65 is to decrease retirement deficits by $985 in current dollars. having a good retirement currently are subject to a Department of Labor safe harbor that includes a requirement that the forced-out Retirement Security Projection Model® estimates an 8.1 percent decrease in retirement savings shortfalls — or 10% employer’s plan can 50% be extremely challenging. When workers in their twenties and thirties continually cash out 49% in 2013 to the 51.4 percent in 2019. (vs. 45% less confident) I sa the o beli utc vings vehicles Co o eve tha mes. nsume This t r Expend the best is t . he c iture Survey way ase with to think of auto fea (as a thfunc tures. e U.S. 4tion of in 6.8 ret Au % ire tom ment come) and atic sys enro tem llment essen so isme preh - ealth and po tially ins st urance changes - 2006 Pens and o the equa ion Pr ut-oftion - o pock tec so tio et, tha n Act t spouse) would need each month in retirement 46.2% comes to retiremen 25% t lifestyles, with some very sp 90% ecif Satisfied ic drivin with g workplace forces behind A fi ll Anancially ges Ages 5 com 5+ fortable vs. balances the amount mus of money t be invest that ed in a people wil capitall ru preserv n shor ation ve t during hic retire le wit men h rea t — so fo nable ex r workers c penses urren . Th tly e EB agRI esI ssu 34– e 39 Brief About the Retirement Security Projection Model their retirement plan balances each time they switch jobs—when it comes to retirement security—they are 0% 45% A possible solution to reduced DB coverage by private sector workers could involve policies that promote sources ( wo PPrkers A). Prio don’ r to t t hav he PPA, e to pro the actively defined choo conse tributio to join the n part retirement plan wo of the ret rkplace ire dement fined co system ntrib ution relied plan on ind buit vidual wo instead are rker s to be health-related expenses, plus stochastic expenses from nursing-home and home-health care (at least until the 16 struggling retirees. “ Comparing Asset Allocation Before and After a Rollover From 401(k) Plans to Individual Retirement Accounts” employed by a small company (an employer with fe (vwer th s. 56% less c an onf 100 iden em t) ployees). Clearly, if adoption were higher, undoing all the go 20o %d that’s come of being automatically enrolled in their retirement plan in the first place. automa In this ana of engaged and guara tic ntally lysi eed inc nav s, plac EBRI igate thei om ed in t agai e wit he n hin r 401( used ir sav the wor its ings pla k) plan prop kplace oth o rietary n and n their m R er th own us etirement t o an defin pt — o and i u Securi t if ed be ncrea they tnefit pla y Pro singly, as do no ject t wish ns. ion we’l Thes to Mo l see, the sav del e mig e. ® to Resea htev include defi alua rch ha ned contri te imme a s s sho cena di butio wn t ate or rio in ha n t 40% EBRI’s R point suSPM ch ex ® simulates penses are co retiremen vered by t Me incodic me aid) ade . quacy for all U.S. households between the ages of 35 and 64. The Planned for how you would cover an 37.3% so finds t would hat 76 be tpercent he impac ot f o IRA n retirem balances le ent sav ss t ings sho han $5,0 rtfalls 00 reside i . n money funds. This compares to 25 percent of Copyright © Employee Benefit Research Institute 2021 All percentages shown are statistically significant 43% sys E which em mos xami tem t people n ing wa ployees s th t e he — spen regardless priva take ding te the - h seabits and ct full oo f age, ge r retireme coro situ nav nde irus ation nt r, race, in sys -related di ste of 2,00 m. T com he stribution 0 individ ePP —A, how tend uals un to ever, was der the CA ages 62 to 75 remain in hea RES Ac thvily bas e at an defined t — d dur ed whic c oo in n t nh is g tr hretire ibuti e reco up t o men o n gni $100, plan tion t in when 000 fro, m deferred income annuities. For workers that no longer have access to retiree medical plans, facilitating usage of emergency or big expense in retirement model reflects the 15% real-world behavior of 27 million 401(k) participants as well as 20 million individuals with Considering auto portability as a stand-alone policy initiative, EBRI estimates the value of additional 35% balances greater than $5,000 in money funds. Further, the majority (52.9 percent) of traditional IRAs with 6 19 many years auto with matic a thre ally e o -year payba f resear enrolled ch . o ck. In Si n milarly, 401 this (k) participa scena researio rch ha , the nt behav s sho overa wn t ioll m r that ha edian re t worker by aut do uct s ar matic ion e n in retir ally ot w in ell creasing ement balan positioned emp to loy ces as sav ee e and con a m trib ul in tiple of ution vest s EBRI’s Spending in Retirement Survey identifies two types of retirees that stand in stark contrast to one health savings accounts for retirement health care expenses may ultimately give retirees greater comfort that However, the key to PEPs fulfilling their potential for expanding access to smaller employers not currently individual retirement accounts (IRAs). RSPM® produces three important 29.7% metrics for evaluating retirement 29.5% accumulations over 40 years (in current dollars) resulting from “partial” and “full” auto portability. Partial auto Less than $35,000 $35,000-$74,999 $75,000 or more 30% balances The Retireme betw nt een Co 10%$1, nfide 000 nce Survey and $5,0 00 ar also e h finds t eld by hat wo workers rkers who ages 25 de– scribe the 44. This is n mselves ot a de as mogra being phic tha confiden t fina t about ncial 23 to the o pay at ag n their defi own. e 65 ned c f The oo r th T n PPA ho tribu o ught se e har tion m abo ness ployees plan ut ed ho o w tver time (e.g he c is mu est c oh nce imated to mon pts ey of be ., tby o wit be 1 hav hd percent 2.3 per ra io w ral finance to cen of p t. Ho ay per year) wever, determine how sho , it uld is pos these sible to adj em to ployees ust the transfo t defin rm p ake ed o the or another: highly indebted retirees who described their debt as unmanageable or even crushing, and long-term 1 they can cover out of pocket health care expenses in retirement. inc sponsori ome adeq ng a uacy: retirem ent plan is to streamline legal and compliance requirements—namely, nonessential 25.3% That’s be portabilitcaus y is when e many participa America nt bala n workers nces o — f less mainly than tho $5, se wo 000, rking adjusfo ted r small e for inflati mplo onyers , are auto — do no matic t hav ally e rolled into access to Source: Employee Benefit Research Institute and Greenwald Research 2021 Retirement Confidence Survey. Copyright © Employee Benefit Research Institute 2021 their retirement prospects 7 are characterized as being engaged: 82 percent have saved for retirement, compared planners generally recommend hold high allocations 23.9 of mo % ney funds. For workers ages 25–29, 76.3 percent had from your retirement savings and investments in 25% 39% full sa contrib vers coro int ution nav o robus irsys us-tem related t sa vers to all dis .o Finally, maki tributio w workers to n up to ng be $100, profes tter su 000 sio cceed in i wit nally h manage no p t. aybac Butd div it’s k (now ersified port they bee fail t n 15 years s o resto folios re t such in he ce the $ as 100 target PPA, ,000 to their -date and we secure retirees, or those retirees who reported they had long-term care insurance. 5% reporting / audit / and compliance requirements may increase costs and thereby reduce employer adoption employer -sponsored retirement plans. According to the Bureau of Labor Statistics (BLS), while nearly 90 percent the new employer plan, eliminating cash outs. Full auto portability is when all participant balances are with 45 percent of less confident workers, and 57 p retirement ercent report having calculated how much money they need all of their IRA balances of $1,000 to $5,000 in money assets even though the accounts were established at least funds t plan balan can identi he def fy ces aault i reas ), the t nves overa hat s tment ve till ll median needhic work: reduction le in adefined ccessin to the s c thei ontr r retirem ibuti ystem, leakag on e plans nt bala results in e from the sy nces as a mmult ore appropr stem, and iple of p po iat ay at age e risk st-retirement -taki 65 i ng by s • Retirement savings shortfalls give the present value of the simulated retirement deficits at retirement 20% rates, plainly defeating the objectives for expanding PEPs. So, in short, PEPs may be viewed by smaller employers automa of workers at tically c rolled into ompa 8 nies w thith e n500 ew emplo or moyer plan. re emplo Und yees have ac er partial a cess t utoo portability, either a defined benefi the estimatet d value of or defined to live comfortable in retirement, compared with 21 percent of less confident workers. 0% Focusing on highly indebted retirees, we note that 1 in 10 (10.3 percent) of the respondents to the Spending in The Retireme plan parti pro spendin seven ject years ed g cip o tut o p a be nt rio o nts. f th 20 Co r. e syste nfide percen nce Survey m t. . finds that while 21 percent of those who had saved for retirement say they Calculated how much money you (and your age (in current dollars). 13.8% 15% as a viable and more practical alternative to the current workplace retirement system, and can improve contrib additional a ution c cumulatio plan, just o ns ( ver half (5 because3 per of eli cen mination t) of work of ca ers at c sh outs) ompa is es nies wit timated h few to b er t e $1, han 509 100 e billimployees ha on in current do ve such llars hav Retire e e men ver tak t Survey repor en a loaspo n from t u te se) d t wo ha heir retire uld t their likely d need ment sa ebt was to c vings eithe over hea plan r unma lth and nagea 14 pble ercent or crushin say they had g. These take highly n a hards indebted hip 38% • Retirement savings surpluses give the present value of simulated retirement surpluses at retirement age Defined Benefit Only Defined Contribution Only Both Keep in mind that at the same time that 401(k) plan assets that are forced out into IRAs are required to be Yet, the Retirement 10% Confidence Survey finds that workers are not as engaged in their own financial security as o acce ver 40 years ss. This create . Under s a re full tirem auto portabil ent landsc itap y, the va e that is lue di is vided into estimated to the “hav be $1, es” 987 an bil d “hav lion. F e-o nots cusing ,” the on wor “havkers i es” be n t inh g e expenses in retirement The R The truly distribu ole of t tion, t cata he Empl hat ros strophic Sou e t rc oyer s e: o U. S. cena 2 De 8 percent pario rtmen, howev t of Labor Fo of rm 5er, Bla 500 Suis when c mk ma wo ries thro rker ug hwo 199s and 34 9. rkers are pro EBRI estimatespercent of 2000 –2019vided CA using BureHispa au of LRE abor n S Sta- ic tiAct sti cwo s, C- uli rre rker ke nt Poa ps ulcc atita ones Su king rv s eyt , o a withdra loan, and 29 wals 22 (in current dollars). and U.S. Department of Labor data. invested https://www in capital .ebri.org/docs preservation fu /default nds, a -source utomati /ebri-issue c e-nr bri o ef/eb llmen rit _i saf b_486 e ha _re rbo tprop rs wit -11 hi jul19 n 401( .pdf?sfv k) plan rsn= s require 1ef23f2f_8 tha t assets they could be. Only half of workers say they have tried to calculate how much money they will need in low thos est inc e worker oms who e quart are em ile who ployed by are curre lar ntly ge 25 co– mpanie 34 — in s o other ffering d words, efined contri workers who bution plans are most an likely d th t e “hav o cash e out, -nots” and fro percent of Bl To m und thei ersco r def rack eined contr th wo e impo rkers a rta ibution nd 22 nce of plan percen the emplo time t oan f Hispani yer in d again th c e ret durin worker ire g their men s takin t s life ystem g hards as vario , I’ll hip dis us crises o note tribut a sta ions ccur. I tistic f fro n t ro m m hth is scenari the eir Retir defined o ement , 5% Copyright © Employee Benefit Research Institute 2021 6 23 htt EBps://www RI research .nb finds t er.org hat /pape a co rs up /w76 le wi 82 th drug expenses at the 90th percentile throughout retirement who wants a 90 be invested in divers 1 ified investments such as target-date funds. Also, state IRA programs such as the Illinois retirement—and despite decades of financial literacy efforts by employers, that number is not different than it Co nfidence Survey , which EBRI produces along with Greenwald Research. This survey provides insights into 12 18 7 Copyright © Employee Benefit Research Institute 2021 0% percen htt htt How St ps://www ps://www t cha ates nce of h Are Worki .j.stor ebri.org/ .org/docs aving ng sta e n to ble ough m /default A /dd 10.108 res one s -so 6/3800 the y urce fo Rr health e/ tir 85 fast em ?s -eq= fa ent S c cts/ff are 1 avi e-xpenses 3 n86 gs Chall -spe in reti nd enge inginr An rem eti an ent by a rem alysi ent s of ge -4m sta 65 ar21.pdf?s te shou -sponsored ld targ fvret sn=d982 initi retiativ ree 3a h es to he 2f_6 ealth c lp are was in 1999. The Retirement Confidence Survey also finds a disconnect between retirement confidence and White, non-Hispanic Black/African American Hispanic Other 8 19 3 9 14 sav priv 2020 A Deeper htt htt htt ings ate sector ps://www ps://www ps://www Call of $32 an Loo DC T 5, wor .k at Ass ebri . .ebri bls.gov 00rends kers 0 .org/docs .org/pu in et sav 2020. /news Su All e. Pew rv blic oc /default e http .r y ation: Pla el ations/res ease report. Ju s://ww -/so pdf/ n urce w.e ear Snlsoy.pdf tructure ne 1, bri.or / cebri h-publi 2016 -g/ is and sue reti cations -re bri De me ef/eb mograph /nt/con issue ri_i -brie b_ ty the ent 505 fs/ /ac Key to _20 -onten bit- 20cri of-E tgoo / ffec wh sisd -y tiv 21apr2 --news do e Pl -people an -du 0.p D ri d esi n f?s -g spe gn -t fvr he . nPubli sn=b342 d -pa -the nd c Reti -wa em 3d2f_ y ic rem -the -savi ent 4 y- ng do s- - potential retirement reality: While most workers report being confident they know how much monthly income Copyright © Employee Benefit Research Institute 2021 21 4 16 1 13 17 20 11 10 5 15 2 Source: Employee Benefit Research Institute estimates from the 2019 Survey of Consumer Finances. 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