1 in 8 US Adults Over 55 Plan to Delay Retirement Age Due to COVID-19
*Smart Survey Finds US Retirement Patterns are Changing, Increased Retirement Income Concerns Means People Need Solutions to Help them Make Decisions*
*NASHVILLE, TN / ACCESSWIRE / December 10, 2020 /* New research by YouGov on behalf of Smart suggests that one in eight US adults (13%) over the age of 55 who expect to retire in the future are planning on delaying their retirement due to the Covid-19 pandemic. When asked what age they plan to retire, 39% of the US adults over 55 reported the range of 65-69 while 18% reported 70-79. The research also suggests that half mentioned being able to afford healthcare costs (e.g., paying for medication, medical appointments or procedures, etc.) as a concern regarding their finances during retirement.
The news comes as Smart, the fast-growing global retirement technology platform provider, launches Smart Retire, an innovative product that gives the flexibility to plan and manage retirement savings in a personalized way.
Jodan Ledford, CEO of Smart USA, said:
"COVID-19 has impacted our lives today as well as our futures, and this survey confirms that these shifts are changing the nature of retirement fast. We know that people are rightfully concerned about their retirement income and are encouraged by the US government's moves with the SECURE Act to widen access to retirement vehicles for the American public as well as its focus on retirement income generation."
"We at Smart are proud to launch our new global Smart Retire solution during these times especially. We hear the concerns of the public and spent hundreds of hours testing and refining our new Smart Retire solution to help people make smarter retirement savings decisions."
*The survey*
The YouGov survey of [2654 US adults], conducted on behalf of Smart in November 2020, painted a complicated picture for people approaching retirement.
Nearly half (42%) of people aged 55+ think of retirement as an event with several stages, a statistic backed up with people having very different expectations for when they will retire. 34% expect to continue to work after retirement age. Looking at the US adults aged 55+ who expect to retire in the future:
· 16% say they will or did first access their retirement savings between 60-64
· 39% say they will or did first access their retirement savings between 65-69
· 16% say they will or did first access their retirement savings between 70-74
Smart research suggests people aged 55+ want control and flexibility from their retirement options:
· 36% would like to receive advice on how much they can safely withdraw each month without running out of money
· 38% want to have the ability to change their income if their financial needs change
· 19% would like to receive a guaranteed income or annuity
Although 38% of US adults aged 55+ say they want to manage their retirement finances themselves without assistance, 43% would like help with managing their retirement finances, and 21% don't understand their options around finance at retirement. However, 42% of respondents over the age of 55 say they have never received any advice on finances in retirement. Furthermore, one-third of respondents say they would like to receive advice from their retirement plan provider, but only 9% cite their plan provider as one of their most useful sources of advice.
Participants value clear communications and online tools from their retirement plan providers. 43% prioritized receiving clear, simple communications about their retirement savings. Online tools are important, both for checking account balances (42%) and accessing income (40%).
Worryingly, 78% of all US adults aged 55+ have concerns around finance in retirement, while 13% of those aged 55+ who expect to retire in the future have decided to delay their retirement due to the pandemic. More than half of those who expect to delay retirement think they will retire much later than expected.
*Smart Retire*
Smart Retire provides plan participants an integrated solution to help them through the complexities most participants face in the run-up to retirement. Smart Retire helps filling the ‘advice gap' through proprietary online tools to provide a plan that can be used with the advice of a professional to provide members with a custom solution.
Designed by Smart's in-house research and UX team, Smart Retire has been built to provide a flexible solution that allows users to plan out multiple retirement scenarios and update their retirement strategy on an ongoing basis.
Smart Retire helps participants break down the often overwhelming retirement planning process down into a number of manageable spending and savings objectives. This guided retirement journey can help participants create a sustainable retirement income stream for themselves that can provide increased comfort and less uncertainty related to spending in retirement. In addition to guiding participants through the decision-making process, Smart Retire includes an integrated technology platform that allows participants to implement the investment and spending decisions they make.
Smart Retire will initially be available to members of the Smart Pension Master Trust in the UK, with plans to roll out globally in 2021.
Recognizing that consumers have long enjoyed technology advancements in banking, payments, and investments, Smart's global mission is to transform retirement savings and financial well-being across all generations worldwide through technology and bring the pensions sector in line.
*ENDS*
Notes to editor:
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2654 adults. Fieldwork was undertaken between 19th - 20th November 2020. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18+).
*About Smart:*
Smart USA Co is a Delaware corporation formed in 2020 and is a subsidiary of Smart Pension Ltd., a global savings and investments technology platform provider, co-founded in 2014 by Andrew Evans, Group CEO, and Will Wynne, Group MD. Legal & General Investment Management (LGIM), J.P. Morgan, Link Group, Natixis Investment Managers, and Barclays are all investors in Smart.
The Smart platform powers the award-winning master trust, Smart Pension Master Trust. Launched in 2015, the Smart Pension Master Trust has grown from £100 million in AUM to £1.3 billion in two years. It is overseen by independent professional trustees and regulated by The Pensions Regulator. Smart Pension is a signatory of the UN Principles of Responsible Investing (PRI).
In 2020 Smart Pension was named Master Trust Offering of the Year at the Pension Age Awards. Other awards include DC Master Trust of the Year, DC Innovation of the Year, and Retirement Innovation of the Year in the 2019 UK Pensions Awards. Smart Pension was also named European Pension Fund of the Year 2019 in the European Pension Awards.
Find out more about Smart: https://www.smart.co/
We tweet as @SmartPensionUK
*Media Contact:*
Jacqueline Silva
Caliber Corporate Advisers for Smart
Jacqueline@calibercorporate.com
*SOURCE: *Smart
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