Retirement Income Strategies and Expectations (RISE) Survey

Now in its ninth year, Franklin Templeton’s RISE Survey explores attitudes and concerns about preparing for and living in retirement. Learn more about what people are doing to build preparedness and confidence, while balancing various financial priorities.

Kickstarting Good Financial Habits

Meeting Americans where they are is critical to a strong start

Engagement around financial well-being is needed early on

Drivers of stress for younger American adults:

#1

Debt

#2

Ability to handle unforeseen expenses

#3

Day to day expenses

28%

of pre-retirees who feel behind on saving blame prioritizing debt repayment over saving for retirement

Wide range of priorities demands more personalized strategies

39%

Saving for retirement

40%

Paying off debt

45%

Having sufficient emergency savings to cover unexpected expenses

“My ability to handle unforeseen expenses” is a top stress driver across all ages.

Approaching Retirement

Feeling prepared to retire on your own terms

Focus on retirement income plans important in the decade before retirement

72%

confident they understand how much they will need for expenses in retirement

but...

45%

concerned about managing retirement income to meet expenses

but...

58%

do not have a strategy to generate income for 30 years or more

Target retirement dates are personal

Over one third of working Americans in their 60s are still working because they enjoy it

64%

of pre-retirees say they would make work related adjustments if they didn’t have enough saved, but more than ¼ of retirees retired due to circumstances beyond their control

29%

of pre-retirees age 55-64 who plan to retire said Social Security eligibility is the main influencer of their target retirement date

Living in Retirement

Realities and sentiment during Americans’ non-working years

Hindsight sheds light on how expensive retirement is

56%

“I should have saved more”

69%

“Expenses remained the same or increased”

People require a strategy for securing income for life

38%

of current retirees are trying not to dip into savings, primarily driven by uncertainty

49%

of Americans willing to pay for insurance that guarantees a stream of income for as long as they live

97%

of those participating in an employer sponsored retirement plan are looking for investment options that help turn savings into a stream of income in retirement

Build your retirement preparedness one step at a time.

1. Take care of your financial well-being early.

  • Leverage resources that can help with things like budgeting, building an emergency savings nest egg and managing debt.

2. Make sure your strategy is personalized.

  • Ensure your financial strategies are holistic and reflect your unique needs and circumstances.

3. Think about how you will recreate a paycheck.

  • Learn what retirement-related expenses might look like, identify income replacement gaps and optimize your Social Security claiming strategy.

Note: "Younger American adults" are pre-retirees, ages 25-34. "Decade before retirement" are pre-retirees ages 55-64.

Methodology
The RISE survey was conducted online among a sample of 2,004 adults comprising 1,002 men and 1,002 women 18 years of age or older. The survey was administered between January 31 and February 11, 2020, by ENGINE’s Online CARAVAN®, which is not affiliated with Franklin Templeton. Data is weighted to gender, age, geographic region, education and race. The custom-designed weighting program assigns a weighting factor to the data based on current population statistics from the U.S. Census Bureau.

Important Legal Information
This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only, and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance.

Franklin Templeton does not provide legal or tax advice. Federal and state laws and regulations are complex and subject to change, which can materially impact your results. Franklin Templeton Distributors, Inc. (FTDI) cannot guarantee that such information is accurate, complete or timely; and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

All financial decisions and investments involve risk, including possible loss of principal.

Investing in a Franklin Templeton fund does not guarantee one’s retirement income needs will be met.
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