"It is surprising that such a large proportion of older workers have failed to do this basic level of income planning when most are within 10 years of retirement," said
The study found that two-thirds of workers ages 55-64 planned to make withdrawals - either directly from their DC accounts or after rolling over the assets into an IRA. Only 1 in 6 say they plan to convert some or all of their balance into a guaranteed lifetime income.
While 24 percent of workers age 55 to 64 who have developed specific income-generation strategies say they plan to take systematic withdraws from their retirement savings, more than double (65 percent) say they plan to withdraw money on an occasional basis or when needed. Among those who have no specific income strategy, simple procrastination is the top reason given for not yet creating one (chart).
"Going through the planning process during the pre-retirement years may prompt changes in their savings behavior, how they allocate their assets or the decision to purchase other retirement products," noted Drinkwater. "Ultimately, our research has shown that people who take the steps to plan for retirement are more likely to feel more confident in their ability to be financially secure throughout their retirement."
TNS 24HariCha-140219-30FurigayJane-4641221 30FurigayJane
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