Retirement Savings: Priorities, Strategies, and Barriers

RETIREMENT SAVINGS: PRIORITIES, STRATEGIES, AND BARRIERS

A Survey for the AARP / Ad Council Saving for Retirement Campaign

January 2019

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DOI:

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Table of Contents

Introduction Key Findings Detailed Findings Implications Methodology Contact

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INTRODUCTION

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Introduction

This survey of moderate-income working adults ages 40-59 was conducted for the AAARP/Ad Council Saving for Retirement Campaign from November 28 through December 5, 2018.*

The survey takes a fresh look at recent experiences with and attitudes toward retirement saving including: ? How many set retirement savings goals in 2018? ? How many were able to save for retirement in 2018? ? For those who didn't save or who didn't meet their goals, what were the barriers to saving? ? What are their savings priorities for 2019, and how does retirement saving compare to other

savings priorities? ? In their lifetime, do they think they're more or less likely to learn that Bigfoot has been

confirmed real or save enough for a comfortable retirement?

The AARP/Ad Council Saving for Retirement Campaign, which was originally launched in 2017 at , offers a quick and easy retirement planning resource ? in just about three minutes, users can chat with a friendly digital retirement coach, Avo, to get their personalized action plan.

*The survey sample included 1,611 employed adults ages 40-59 with household incomes from $40,000 to $99,999. For more information about the sample, see the Methodology section.

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KEY FINDINGS

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Key Findings

Fewer than half (47%) of moderate-income working adults ages 40-59 say retirement is one of their top three savings priorities for 2019. When asked for their #1 savings priority for 2019, respondents most commonly cite paying off debt (33%), followed by saving for retirement (21%).

Nearly 3 in 10 (28%) think they're more likely to learn Bigfoot is real than to save enough for retirement.

Seven in ten (69%) saved at least some money for retirement in 2018.

Four in ten (40%) set a retirement savings goal in 2018.

Those who set retirement savings goals were more likely to save than those who did not set goals. Of those who set a retirement savings goal, 84% were able to save some money for retirement in 2018. Of those who did not set a goal, just 60% saved some money for retirement.

Among those who saved for retirement last year, nearly half (48%) set a retirement savings goal. Other strategies used by retirement savers last year include: ? Increasing contributions to their employer-sponsored retirement plan to get the full

match (27%) ? Putting extra income, raises, or bonuses directly into retirement savings (18%) ? Cutting back on everyday expenses and spending (17%)

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DETAILED FINDINGS

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More Than Half Cite Paying Off Debt Among Their Top Three Savings Priorities for 2019

? The focus on paying off debt is particularly high among women (60% vs. 51% among men). ? Overall, building retirement funds is on par with setting up an emergency fund in terms of top three 2019 priorities. ? Adults ages 50-59 are especially likely to be focusing on their retirement fund (58% vs. 37% of adults ages 40-49).

Paying off a significant debt, such as a credit card, student loan, or mortgage Building up my retirement fund

Building up my emergency fund

55% 47% 46%

Paying Off Debt 60%

Home repairs/improvements Vacation/travel

30%

39%

51%

Buying a car My children's college expenses

16% 13%

Building Retirement Fund

Buying a home None of these

10% 7%

Age 50-59 58% Age 40-49 37%

Q1. Of the following items, which, if any, are your top savings priorities for 2019? Please rank your top three priorities, where "1" is your top priority. [Chart displays percentage of respondents who selected each item as priority 1, 2, or 3.] Base: Full Sample (1,611 employed adults ages 40-59 with household incomes from $40,000 to $99,999)

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