SURVEY SAYS: Retirement Readiness Calculators

Many providers offer tools that help retirement plan participants determine whether they are on track to replace a sufficient amount of income in retirement, and some offer suggestions for how to better get on track.

By Rebecca Moore | January 09, 2017
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Last week, I asked NewsDash readers, “Have you used such a tool, did you believe the results or take them seriously, and how did the results make you feel?”

A vast majority (95.7%) have used a retirement readiness or retirement income projection tool, while 4.3% have not. Nearly two-thirds (64.4%) indicated they believed the results and took them seriously, but 35.6% did not.

The results made 47.7% of responding readers feel encouraged; 6.8% discouraged; and 45.4% neither encouraged nor discouraged.

Among verbatim comments, many responding readers pointed out that these types of tools don’t take into account everything and should be taken with a “grain of salt.” However, even those that doubted their accuracy indicated it is a good guideline to get participants more engaged in their retirement savings. Editor’s Choice goes to the reader who said: “There are way too many variables in a person’s life over the next 20 - 40 years to put a lot of stock in those projections. For someone who has not done a lot of planning I have seen it be a great motivational tool to show them their future life of poverty if they don't make some changes.” 

A big thank you to all who participated in the survey!