Participating in a retirement plan bolsters one’s confidence in a secure financial future, but depending on age, gender or plan balance, some are more confident than others, according to a new Spectrem Group Defined Contribution Market Insights report “Financial Attitudes and Concerns of Retirement Plan Participants.”
Overall, surveyed retirement plan participants are neither very worried nor not at all worried about depleting their retirement funds too early (51.50 on a scale of 0 and 100 on which 0=not at all worried and 100 – very worried).
A recent Employee Benefit Retirement Institute retirement confidence study found that among those enrolled in a retirement plan, the percentage very confident in their financial future increased from 14 percent in 2013 to 28 percent in 2015. In contrast, the percentage very confident remained statistically unchanged among those without a plan (10 percent in 2013, 9 percent in 2014, and 12 percent in 2015)
But concern over outliving their retirement savings increases with age. Millennial retirement plan participants posted 45.83 on the worry scale compared with 48.89 for respondents ages 36-49, 50.29 for those ages 50-64 and 58.32 for seniors ages 65 and up.
Not surprisingly, women (55.10) were more likely than men (47.44) to indicate worry about depleting their retirement finds too early, a reflection of the unique financial challenges they face in saving for retirement, ranging from salary inequality to interrupting their careers to start a family or serve as family caregivers.
Worry about depleting retirement funds too early also increases according to plan balance. Participants with a plan balance of less than $10,000 expressed less concern (49.42) than those with between $50,000-$99,000 (54.11)
(What factors do retirement plan participants consider when selecting an investment? Click here to learn more about the report.)
Six-in-ten surveyed retirement plan participants are most worried of healthcare costs depleting their retirement funds, while half are concerned about too much spending. Four-in-ten express the most concern about taxes and low interest rates contributing to the depletion of their retirement funds.