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Data show that demand for financial planning services, which can improve participant confidence about their financial outlook, is stronger among participants who are within one to five years of their retirement date. These results highlight an opportunity for digital financial planning solutions.
Key findings
Demand for financial services is strong.
It’s strongest among participants who are within one to five years of their retirement date
Retirement planning can improve participant confidence.
Survey respondents with a formal plan were 62.5% more confident about their financial outlook.
There’s an opportunity for new solutions.
The survey highlights an opportunity to develop and integrate digital and specialized financial planning for retirement income and other related decisions.
The spending phase of retirement is more complex than the saving phase.
The value of financial planning is high
It’s especially valued by preretirees and retirees who are wondering where to start.
17%
had not given much thought to forming a retirement plan
65%
did not know how much they can withdraw monthly from retirement savings
35%–56%
reported that their understanding of investment and annuity products is not very good or not good at all
The demand for financial advice is an opportunity for digital solutions
are open to digital advice solutions (although speaking with an advisor is preferred)
have greater confidence in their retirement outlook with a formal written plan
How can employers and retirement professionals help?
See T. Rowe Price’s thoughts on next steps:
The Retirement Savings and Spending Study is a nationally representative online survey of 401(k) plan participants and retirees. The survey has been fielded annually since 2014. The 2023 survey was conducted between July 24, 2023, and August 13, 2023. It included 3,041 401(k) participants, full-time or part-time workers who never retired, currently age 18 or older, and are either contributing to a 401(k) plan or eligible to contribute with a balance of $1,000 or more. The survey also included 1,176 retirees who have retired with a Rollover IRA or left a 401(k) plan balance.
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