Only 20% of people aged 20 to 29 in the world believe they’ll achieve their full retirement income goals, according to the survey of residents of 15 countries conducted last year by the nonprofit Transamerica Center for Retirement Studies, Aegon Center for Longevity and Retirement (ACLR), and Instituto de Longevidade Mongeral Aegon. Only eleven percent said they believe they’re on track to achieve about 75% of their retirement income needs.
What does it mean? It means that at least for the United States, we have a job to do. If I would say that the retirement plan industry could improve the most, it would be with interaction with plan participants. Plan providers need to understand that the future of the business rests with younger participants and this survey is a clue that there is a lack of confidence in younger participants that they could achieve their retirement goals.