MassMutual Survey Says: Among American Workers, Women Much More Concerned Than Men with Keeping Up With Monthly Expenses
SPRINGFIELD, Mass., Nov. 7, 2011 /PRNewswire/ -- In a recent nationwide survey of American workers who are eligible to participate in an employer-sponsored defined contribution retirement plan, both men and women are concerned about saving enough for retirement – but for women, just keeping up with monthly expenses is an even bigger concern. The proprietary survey, sponsored by MassMutual Retirement Services and conducted by Brightwork Partners, indicates that the weak economy is weighing heavily on the minds of American workers.
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Among survey respondents, 31% believe the United States will be in a recession in the next 12 months and 38% are somewhat or very concerned about losing their jobs. Overall, the biggest financial worry is "just keeping up with monthly expenses" (21%) closely followed by "saving enough for retirement" (18%) -- but there are important distinctions between genders and age groups:
- Saving enough for retirement is the biggest financial worry for men, but women are far more concerned about just keeping up with monthly expenses – in fact, more than twice as many women are concerned about monthly expenses than saving enough for retirement.
- Interestingly, respondents under age 30 have significant concern about saving to buy a home, indicating that there is still an appetite for home ownership among younger workers. Keeping up with monthly expenses was their only larger concern.
- The top two concerns for people over the age of 60 are "expense of catastrophic illness" and "long term care for yourself or your spouse when you need it" – two factors that have potential to rapidly deplete retirement savings.
In terms of being able to retire, 35% of respondents have considered delaying retirement beyond their original target date, and that percentage jumps to more than 50% for people currently age 50 and older. In addition, 64% of people expect to work at least part-time in retirement and 54% expect they will need to reduce their standard of living. Women expect to work longer than men, with an average expected retirement age of 66.9 compared to 65.6 for men.
On a positive note, the percentage of respondents who took action likely to improve their retirement savings was far higher than that of the respondents who took action that could harm their chances for a comfortable retirement. The three most frequently cited positive actions taken by respondents were increasing savings percentages through workplace retirement plans (19%), reallocating existing portfolios (19%), and contributing to a regular IRA (18%). Actions taken that could harm respondents' retirement savings outcome included decreasing contribution percentages in their workplace retirement plan (8%), taking loans (8%), stopping saving in their workplace retirement plan altogether (7%), or making hardship withdrawals (4%).
The data also shows that there is plenty of opportunity for retirement plan advisors to help participants prepare for retirement. Only 29% of respondents currently have, or have had in the past five years, a relationship with a personal financial advisor.
"It's encouraging to see that a significant number of participants are still taking positive actions towards securing an adequate retirement income despite the very uncertain economic conditions," says Merl Baker, principal, Brightwork Partners. "That said, there are still a lot of Americans who need help. Tools that enable participants to manage to a better retirement outcome are clearly part of the support that is needed," adds Baker.
"This data clearly captures the uncertainty that is pervasive in today's economic environment and, at the same time, it shows that saving for retirement is a top-of-mind concern. Research such as this continues to fuel MassMutual's efforts in the realm of plan health and participant readiness, and makes us better equipped to help participants understand what it will take for them to retire," says Elaine Sarsynski, executive vice president of MassMutual's Retirement Services Division and chairman and CEO of MassMutual International LLC. "Providers like MassMutual who offer tools to show retirement plan participants what they can expect in terms of projected monthly income in retirement – this is the kind of information that truly helps participants understand their situation and 'see it' in a way that is meaningful," she adds.
The nationwide survey was conducted online between June 29 and July 29, 2011, and included 2,170 defined contribution plan participants who are eligible to participate in a 401(k), 403(b), 457 or similar workplace retirement plan.
Earlier this year, MassMutual introduced its RetireSmart(SM) Ready tool that provides a simple way for retirement plan participants to calculate and implement saving rates and asset allocation strategies that may significantly increase their chances of achieving enough income in retirement. The RetireSmart Ready tool, which is personalized for an individual participant's goals and preferences, is available to all participants on the MassMutual retirement services platform. To access the tool, participants simply log into their retirement account on http://www.retiresmart.com.
In addition, MassMutual introduced its PlanSmart(SM) Analysis report, a plan-level solution that assesses the percentage of employees who are on track to replace a specified level of income in retirement. RetireSmart Ready and PlanSmart Analysis are key elements of MassMutual's award-winning participant engagement platform. Together, they put actionable tools in the hands of retirement plan advisors, plan sponsors and participants with the goal of helping more participants achieve their desired income level in retirement.
For more information about MassMutual Retirement Services, please contact your retirement advisor or call MassMutual at (888) 626-4911.
About MassMutual
MassMutual's Retirement Services Division has been serving retirement plans for 65 years. It offers a full range of products and services for corporate, union, nonprofit and governmental employers' defined benefit, defined contribution and nonqualified deferred compensation plans. It serves approximately 1.3 million participants.
Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyholders. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyholders every year since the 1860s. With whole life insurance as its foundation, MassMutual provides products to help meet the financial needs of clients, such as life insurance, disability income insurance, long term care insurance, retirement/401(k) plan services, and annuities. In addition, the company's strong and growing network of financial professionals helps clients make good financial decisions for the long-term.
MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) [of which Retirement Services is a division] and its affiliated companies and sales representatives. MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile Trust Company; MassMutual International LLC; MML Investors Services, LLC, Member FINRA and SIPC; OppenheimerFunds, Inc.; and The MassMutual Trust Company, FSB.
For more information, visit www.massmutual.com or "Like" MassMutual on Facebook and Facebook.com/retiresmart.
About Brightwork Partners LLC
Brightwork Partners LLC is a research-based consultancy focusing on product, service and distribution issues in retail and institutional financial services. Best known for its work among advisors, Brightwork supports clients who distribute retail investment and institutional retirement products through non-proprietary advisor channels. Brightwork's research is based on work among business owners; high net worth individuals; retail advisors; participants and former participants in qualified plans; plan sponsors; advisors who sell retirement services; consultants; and TPAs who administer retirement plans. Brightwork Partners works with most of the leading mutual fund companies, insurance companies and broker/dealers active in these product areas.
Brightwork Partners LLC was founded in 1999. The firm is based in Stamford, Connecticut.
Copyright © 2011 Massachusetts Mutual Life Insurance Company (MassMutual) and affiliates, Springfield, MA 01111-0001.
All rights reserved.
Contact: Lisa Reilly
413-744-0589
[email protected]
SOURCE MassMutual Retirement Services
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