Question: As part of our efforts to attract and retain employees, our plan committee is working with our plan advisor to enhance our retirement plan. We are thinking of adding some lifetime income solutions. Our chief financial officer is big on data — do you have any research to help us justify the effort?
Answer: Workers are anxious about the effects of a potential recession on their retirement planning, which may be driving greater interest in retirement income options. The 2022 Protected Retirement Income and Planning Report says only 48% of workers believe their retirement savings and other sources of income will last throughout their lifetime, down from 55% in 2021. In addition, 70% said they will be able to fund basic needs in retirement, whereas only 23% hope to be able to fund the basics. When workers were asked if they would be able to fund “wants” in retirement, 35% said they will be able fund them, whereas 49% hope to and 11% said “no chance.” To help further your case for adding lifetime income solutions, you can view the report by clicking here.