Retirement
Pendulum

If you’re worried about your workforce’s retirement, you’re not alone

Employer survey finds low confidence in their employees’ retirement security.
Preparing for Retirement

Here’s what keeps employers up at night

Findings from the 2018 TIAA Plan Sponsor Retirement Survey show that both nonprofit and corporate, for-profit employers are uncertain about their employees’ financial futures.

Retiree Healthcare Costs

91%
Of plans sponsors are concerned with rising healthcare costs

Outliving Retirement Savings

77%
Of plans sponsors are concerned employees will outlive retirement savings

Not Saving Enough

75%
Of plans sponsors are concerned employees are not saving enough
Security in Retirement

Are your employees at risk of outliving their retirement savings?

With most 65 year olds living past age 85,1 many Americans are underestimating their life expectancies.

Do your employees know how much monthly lifetime income they’ll need in retirement?
Guaranteed Income for Life

Both employers and employees agree guaranteed income for life makes sense

$500K Lump Sum $2.7K Per month for life
We asked plan sponsors if they thought employees would prefer receiving $2,700 a month for life or a $500,000 lump sum at retirement - they chose guaranteed income for life. We asked employees the same thing and they agreed.

Plan Sponsors

 
51%
 
Think their employees would prefer receiving $2,700 per month for life

Employees

62%
 
 
Would rather get $2,700 per month for life
Creating Awareness

But most plans do not offer guaranteed lifetime income options

While employers and employees have a strong interest in lifetime income,
many retirement plans don’t offer these options.

Current Options Don’t Address Key Risks

73%
Of plan sponsors say their current default investment options are not effectively managing longevity risk

Yet Most Plan Sponsors Don’t Have Lifetime Income Options

12%
 
Offer annuities, a guaranteed lifetime income option

And Aren’t Considering Adding Lifetime Income Options

5%
 
Of plan sponsors not offering annuities are likely to add a retirement income option to their plan in the next year
Annuities Can Help
Open Hands with Money

“The length of time we can expect to live in retirement has never been greater, which makes ensuring employees have access to lifetime income solutions more important than ever.”

Doug Chittenden | EVP, Institutional Financial Services
 
TIAA’s online tools and resources can help your employees plan for a comfortable and secure retirement.
What you can do

Three ways to ensure retirees don’t outlive their income

Despite the hurdles, there are efforts  underway to make it easier for all employers to offer customized solutions that guarantee income in retirement.
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Get Informed
The Alliance for Lifetime Income is helping Americans address the risk of outliving their income. Learn more about this important initiative and how it might help you educate your employees.
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Maximize Available Resources
Work with your retirement plan provider to leverage plan design, financial advice, education and retirement planning tools.
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Support Legislation
There is work underway to amend the Employee Retirement Income Security Act (ERISA) to make it easier for employers to offer lifetime income solutions to their  employees. Read more about it here .
MORE INFORMATION AND DETAILS ABOUT THIS SURVEY

Executive Summary

Insights to improve Retirement Outcomes

 
To learn more about how policymakers can restore the role of lifetime income in workplace retirement plans, visit “Closing the Guarantee Gap .”
1 Closing the Guarantee Gap: How policymakers can restore the role of lifetime income in workplace retirement plans, TIAA (2017), available at: https://www.tiaa.org/public/pdf/closing_the_guarantee_gap_executive_summary.pdf
 
Guarantees are subject to the claims-paying ability of Teachers Insurance and Annuity Association of America’s (TIAA).
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