Plan Sponsors Can Do More to Help Participants Prepare for Retirement

According to a survey of retirees by TIAA, 86% are satisfied with their finances. Fifty-four percent said that they have not had to make and lifestyle adjustments, although 20% have made such minor changes as buying fewer clothes or eating out less.

Seventeen percent are working for pay, and of this group, only 5% are doing so for purely financial reasons.

TIAA also looked at the differences between male and female retirees. Male retirees are more confident about their finances, with 77% saying that they found the transition into retirement easy, compared to 69% of women. Fifty-eight percent of male retirees are very satisfied with their financial health, compared to 46% of female retirees. Twenty-nine percent of retired women, on the other hand, are worried about running out of money, compared to 15% of their male counterparts.

Aging is a concern for both sexes. Fifty-three percent of retirees worry about becoming a burden to others, 46% agonize about a spouse or partner dying, 44% think about what their life will be like if their mental abilities deteriorate, and 43% worry about mobility issues. TIAA notes that this is why retirement plan participants should invest in health savings accounts (HSAs) and those approaching retirement or in retirement should consider long-term care insurance.

The investment firm also says retirement plan sponsors should include lifetime income options in their investment lineups.

GfK Custom Research North America conducted the survey among a total of 1,583 TIAA retirees between May 28 and August 27, 2015. TIAA’s full “Voices of Experience” report can be downloaded here.