They also have a realistic idea of what level of income they are likely to require in retirement. In fact, pre-retirees’ expected income replacement ratio (65% of income) closely mirrors actual ratios cited by retirees (64% of income).
They understand what’s “under the hood”
Owning retirement readiness extends beyond seeing oneself as responsible and having realistic retirement income expectations. Americans report the greatest level of investment awareness of the savers we surveyed. What’s more, American retirees appear to be sincerely satisfied with the control they exercise over their DC plans. Nearly 60% report that they are extremely happy with the options they chose in funding their retirement while 80% saw themselves as having significant choice in selecting how they would use their retirement savings. These insights suggest an important connection between awareness, choice, and satisfaction.