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.”
A new survey finds that many women prioritize financial security but continue to leave savings in accounts that may not keep pace with inflation.
Roundhill, Bitwise and GraniteShares funds remain on hold while the agency weighs how novel ETFs should be regulated.
"Shares of alternative assets managers have lagged this year as investors grow wary of private-credit exposure."
The fintech platform is touting a new AI-free Planning Observations feature, which draws on IRS tax records to uncover opportunities for advisors.
The Omaha, Nebraska-based RIA's latest acquisition expands its Rocky Mountain footprint after two prior Colorado deals last year.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
