For example, the average age that current workers expect to retire is 67. Yet current retirees retired on average at 60, with nearly 2/3 indicating that was earlier than they planned. Moreover, 77% of older workers in our survey said they expect to be at least moderately comfortable in retirement. However, fewer current retirees in this age group (68%) said they were financially comfortable.

In my view, the disconnect between retirement expectations and the realities of current retirees reflects the many uncertainties and unknowns American workers have about their retirement preparations. For many Americans, the primary vehicle for retirement planning is in the workplace with their retirement plan. Leading an organization that focuses on this exact population, we have a duty and honor to help more workers take steps to feel more confident in their financial futures.

Consistent retirement income breeds confidence

Current workers who have pensions are more likely to say they’re on track to retire when planned, compared to those who don’t have pensions at work (78% versus 59%). Moreover, those workers with pensions also expect to be more financially comfortable when they eventually enter retirement (82% versus 74% of those without pensions).

Building retirement confidence is good business

It’s not just employees who like these in-plan solutions. Employers also stand to benefit by helping their workers better prepare for and live in retirement.

For example, workers who feel financially prepared for their futures are less likely to delay retirement. When more workers can retire on time, employers may see the impact of lower compensation and benefit costs among highly paid workers. A reduction in delayed retirements may also ease constraints on hiring and promoting talent in a company’s workforce.

Employers may also enjoy an upward bounce in productivity from employees. In last year’s Nationwide Retirement Institute® survey of plan participants, 73% said financial worries had a severe impact on their productivity at work. By offering an in-plan guarantee, plan sponsors can address these concerns, helping workers to feel more confident about their financial futures and stay focused on their day job.

Other ways to boost confidence among plan participants

There’s more in our latest survey that retirement plan sponsors may find helpful in growing plan participation and promoting retirement confidence.

In our survey, we asked workers and retirees in their early 60s what advice they’d give to their younger selves about preparing for retirement. The most common pieces of advice were around saving and planning for retirement earlier in life. (Respectively, 63% and 41% of survey respondents gave these two answers.)

As financial professionals, we’re well aware of the powerful benefits that compounding investment growth offers for those who take advantage of the time they have before retirement by starting to save early. This lesson from older retirement savers is one that younger workers should learn on their first day on the job.

There are other life lessons from older workers that plan sponsors can share with participants at all stages of retirement planning. For example, maximizing plan contributions and enrolling in auto-escalation features are great ways to accelerate your retirement plan.

It’s also important that employees hear perspectives that challenge their expectations for retirement. For example, younger workers shouldn’t expect to work as long as they want, they may not be able to count on Social Security as much as they think, and their living expenses may be higher than planned.

Learn more about protected retirement income

As an industry, we’ve done a great job of providing tools and solutions to help participants accumulate assets. At Nationwide, we believe that offering protected retirement income solutions in-plan are the next generation of retirement planning, giving more focus on a plan for not just saving-for but living-in retirement. This represents a tremendous opportunity for the financial services industry to redefine success as achieving a secure retirement where savers aren’t worried about outliving their income.

This is why we offer solutions built to address the very concerns that are eroding participants’ retirement confidence. Whether you’re a plan sponsor or a financial professional, you have a vital role to play in helping participants understand the benefits that in-plan guarantees can offer.

Learn more about how you can help restore retirement confidence with help from Nationwide.

Methodology: Edelman Data and Intelligence (DXI) conducted a nationally representative online survey of 1,000 U.S. residents aged 60 to 65 on behalf of Nationwide from 2 de noviembre through 29 de noviembre de 2023. Como miembro de The Insights Association y ESOMAR, Edelman Data and Intelligence lleva a cabo todas las investigaciones de acuerdo con las leyes locales, nacionales e internacionales, así como en concordancia con todas las normas y directrices de investigación de mercado.

Disclosure:
Las garantías están sujetas a la capacidad de pago de los reclamos de la compañía emisora del seguro. Las disposiciones de estas opciones pueden variar según la selección del plan o la norma estatal. Es posible que estas opciones de inversión no estén disponibles en todos los estados.