The retirement income challenge

Summary

BlackRock's Jaime Magyera discusses retirement readiness, noting 68% of savers feel on track but a large gap exists between actual savings and needed retirement income. Women face extra hurdles from career breaks and longevity, requiring different solutions. Automation like target date funds has helped, but many still plan to reduce savings, worsening the shortfall.

• 68% of retirement savers believe they are on track for the retirement they want.
• Average retirement savings can replace only 50-60% of the income savers think they will need.
• The typical savings rate is 10%, but savers know they should be saving 15%.
• Over half of savers plan to reduce contributions in the next 12 months, moving in the wrong direction.
• Women save at higher rates but accumulate lower balances due to career interruptions and longer lifespans.
• Automation features like auto-escalation and target date funds have improved outcomes, but an engagement gap persists.
• No specific investable products or trades were recommended.