25 July 2023
A BlackRock study has found that US retirement savers are increasingly worried about their ability to save for retirement due to high inflation and volatile markets. The proportion who feel they are “off track” in their savings plan has doubled to 24% since 2021, while the percentage feeling “on track” has dropped to 56%, the lowest since the survey’s inception eight years ago.
Almost 30% of retirement savers now plan to work longer due to economic conditions, with younger workers especially concerned. 31% of them believe they are off track, creating fears they may lose faith in 401(k) and other retirement savings plans.
BlackRock’s findings coincide with an Edelman survey, which found that only 40% of the global public expects their family will be better off in five years, with the US figure even lower at 36%. Despite this, the survey found that 78% of respondents trust their employers, compared to 50% who trust their government and the media.
The market volatility has increased interest in retirement products that guard against significant market swings. 90% of surveyed employees expressed interest in investing in a product that provides guaranteed income, up from 76% two years ago. Several large plan sponsors are currently testing such offerings as their default option.