Americans’ retirement readiness has deteriorated amid the market volatility seen over the last couple of years, according to a Fidelity Investments study released Tuesday.
The study, based on a survey conducted last August and September, shows America’s retirement score fell to 78 in 2022, down from the all-time high of 83 in the previous survey in 2020. That score means Americans saving for retirement have only 78% of the income they need to cover their costs in retirement.
The data suggest that more than half (52%) of the respondents would have to make modest to significant adjustments to their lifestyle in retirement if they don’t catch up on their retirement savings, while more than a third (34%) would have to make significant adjustments.
Fidelity links the deterioration to the market volatility and uncertainty, which it says caused individuals to save less and to invest their savings more conservatively.
Looking at the generational differences, millennials cut their savings rate by 0.2% and boomers cut theirs by 2.2%, but Gen Xers boosted their savings rate by 1.4%.
When it comes to asset allocations, overall, just 59.4% of respondents have asset allocations that are age-appropriate, down 0.6% from 2020.
“American savers continue to navigate through uncertainty, and as a result, may consider pulling back on saving for the future,” Rita Assaf, vice president of retirement at Fidelity Investments, said in a statement. “When it comes to long-term investing, staying focused on your individual goals is critical.”
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
