A recent survey by BlackRock reveals that individuals with access to workplace retirement plans are increasingly optimistic about their financial readiness for retirement. According to the 2024 BlackRock Read on Retirement report, 68% of savers with retirement accounts, such as 401(k)s, feel confident about their financial trajectory, a notable increase from 56% last year. However, concerns about outliving their savings persist, with 60% of respondents expressing anxiety about running out of funds during retirement.
The survey encompassed a diverse group, including retirement plan sponsors, workplace savers, independent savers, and retirees.
Gender Disparities in Retirement Confidence
The findings also highlight a significant gender gap in retirement confidence. Women are more likely to worry about outliving their savings, with only 59% feeling on track to retire compared to 75% of men. This disparity can be attributed to women’s longer life expectancies, necessitating larger savings. Additionally, many women reported confusion regarding how their savings would translate into monthly income during retirement.
Desire for Simplified Saving Strategies
The survey indicates a strong preference for straightforward retirement savings strategies, with 61% of participants currently invested in or planning to invest in target-date funds (TDFs). This trend is particularly pronounced among Gen Z respondents, with 69% either invested in TDFs or preparing to do so. TDFs allow investors to adopt a hands-off approach, gradually shifting their asset allocation toward more conservative investments as they age.
However, many young investors feel uncertain about their financial knowledge. In fact, 63% of Gen Z respondents indicated they lack the understanding necessary to confidently manage their retirement savings. This confusion is not limited to younger generations; 67% of working baby boomers—those born between 1946 and 1964—also expressed a desire for education on income strategies well before their retirement years.
