Planning for Retirement (Dallas Salisbury)

8/7/2019 Planning for Retirement (Dallas Salisbury)

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Striving for a Secure RetirementStriving for a Secure Retirement

Dallas L. SalisburyPresident & CEO

Employee Benefit Research Institute

www.EBRI.org www.ChoosetoSave.org


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2EBRI.org


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The Secure Retirement ChallengesThe Secure Retirement Challenges

Low Social Security benefitsLow Social Security benefits

Limited retiree medical benefitsLimited retiree medical benefits

Limited DB annuity benefitsLimited DB annuity benefits

DC NonDC Non--participationparticipation

DC No automatic base contributionsDC No automatic base contributions

DC Inefficient match formulasDC Inefficient match formulas

DC Low worker contribution ratesDC Low worker contribution rates

DC NonDC Non--growth of contribution ratesgrowth of contribution rates

DC NonDC Non--diversified investingdiversified investingDC NonDC Non--rebalancingrebalancing

Financial Literacy and EducationFinancial Literacy and Education

Public PolicyPublic Policy


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4EBRI.org

5 %

43%

13%

0%

11%

7%

1 %

11% 11%

19%

Workers Retirees

In total, about how much money would you say you currently have in savings and investments,not including the value of your primary residence? Please include savings, certificates of deposit,stocks, bonds, mutual funds, workplace retirement plans, and other investments (Workersresponding n=818, Retirees responding n=190)

Most workers have little in savings.

Less than$ 5,000

$ 5,000-$49,999

$50,000-$99,999

$100,000-$ 49,999

$ 50,000or more

Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc.,2005 Retirement Confidence Survey


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7EBRI.org

32%

23%

3 %

21%21% 22%

18%

21%

16%

8%

11%

6% 7%

11%

%


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8EBRI.org

Of hose no longer work ng for pay, more han half areunable o work.

11

4

4

4

12

23

24

2

Could you please ell me he reason why you are no longer work ng? (Re rees no longerwork ng for pay n re remen , n=2 ) (mul ple responses accep ed)

No heal hy enough

Old/ oo old

S ll help when needed

O her

Don need o work

No longer wan o work

Los job

Can f nd work you l ke



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9EBRI.org

%

1 %1 %

1%

17%

3%

%

3%%

%

38%

%

1 %

5%%

Workers Retirees

bout what percentage of your pre-retirement household income do you think you (and yourspouse) will need to live comfortably in retirement? By pre-retirement income, I mean your

household income right before you retire. (Workers n=5 )bout what percentage of your pre-retirement income is your current household income?

(Retirees n= 5 )

3 in 5 workers expect to live comfortably on 7 % or lessof their pre-retirement income; most retirees have more.

Less than5 %

bout95-1 5%

1 5%or more

Dont knowRefused

bout5 -7 %

bout7 -85%

bout85-95%

Lower(Dont

know %)



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Savings Needed for Employment-Based

Benefits Access-Only Plans at Age 65 in 2015

(assumes 7% premium growth)

Age at Death Premium Only Premium + out-of-

pocket

80 $160,000 $230,000

85 $223,000 $321,000

90 $296,000 $426,000

95 $381,000 $548,000

100 $477,000 $687,000


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EBRI

2121 K Street NW, Suite 600

Washington, DC 20037

Phone: 202-659-0670Fax: 202-775-6312

www.ebri.org

Planning for Retirement (Dallas Salisbury)

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