Despite growing concerns about leakage from retirement plans, a new survey suggests that Americans aren’t very familiar with various distribution options.
The survey, commissioned by Pentegra Retirement Services and conducted online by Harris Poll this month among more than 1,000 employed U.S. adults, found that just 24% were very familiar with lump-sum payouts, while only 29% were very familiar with routine quarterly or monthly payments.
Not surprisingly, they were even less familiar with annuity structures. Just 23% said they were “very familiar” with the concept of annuities, and about 25% were not even aware that this option exists.
More than half (56%) of those with retirement savings have no distribution plan for how they will access and stretch their money once they retire — and one in five indicated they hadn’t given the matter any thought at all.
The findings include the following:
The survey, commissioned by Pentegra Retirement Services and conducted online by Harris Poll this month among more than 1,000 employed U.S. adults, found that just 24% were very familiar with lump-sum payouts, while only 29% were very familiar with routine quarterly or monthly payments.
Not surprisingly, they were even less familiar with annuity structures. Just 23% said they were “very familiar” with the concept of annuities, and about 25% were not even aware that this option exists.
More than half (56%) of those with retirement savings have no distribution plan for how they will access and stretch their money once they retire — and one in five indicated they hadn’t given the matter any thought at all.
The findings include the following:
- The average age working Americans plan to retire is 66, with one in five not planning to retire at all.
- On average, working Americans who plan to retire think they will need $3,200 per month to live on when they retire.
- Among those who plan to take Social Security benefits, the average age they assume they will start receiving their Social Security benefits is 67.
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