About half of U.S. employees who have DC pension plans intend to work at least part-time in retirement, according to a survey from State Street Global Advisors.
“The desire to continue working is not restricted by gender, age, savings, current income or education,” says Fredrik Axsater, global head of defined contribution at State Street Global Advisors. “This signals a big change in attitude toward retirement, and is indicative of the survey results showing that 40% of participants anticipate working well past retirement age because they want to work, not because they have to work.”
The survey also reveals that 74% of employees were satisfied with the career choices they made before retirement. Additionally, 65% of DC plan members picture themselves maintaining their current lifestyle in retirement. And 64% of survey respondents between the ages of 50 and 75 recommend investing earlier to their younger selves.
“Plan sponsors are in an advantageous position to influence the way employees are saving and spending,” says Axsater. “Conversations about lifestyle and influencing habits at an earlier point in an individual’s career can have a major impact on retirement preparedness.”
To that end, the survey recommends that plan sponsors should introduce or expand automated features, such as auto-enrollment and auto-escalation, offer targeted communications that help employees balance their current and future obligations, and focus special attention on younger employees so they can get longer investment time horizons.
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