This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

401(k) Participants Say a Retirement Income Stream is their Top Priority

By Hal M. Bundrick

NEW YORK ( MainStreet)--A gigantic market of investors is seeking assistance. 401(k) participants say their main goal is to have a secure stream of income in retirement, and they're looking for help to achieve that, according to a survey by State Street Global Advisors (SSgA).

Most of the survey participants (80%) believe that a guaranteed monthly payout benefit is a "must have," even if it means compromising some access to their retirement savings.
[Read: <a target="blank" data-add-tracking="true" href=" "><em>Welcome to Student Loan Hell</em></a>]

"Participants are looking forward to life in retirement, and they want to be able to enjoy their golden years without financial stress," says Fredrik Axsater, managing director and head of global Defined Contribution for SSgA. "They need guidance on what do with the savings they have accumulated -- how to spend it and how to make it last."

Less than one-quarter of respondents (24%) are confident that they've saved enough to retire comfortably. In fact, nearly half (46%) aren't planning on retiring until after age 66. Others are willing to wait even longer - 15% say they won't retire until after age 70.
[Read: <a target="blank" data-add-tracking="true" href=" "><em>Verdict on Hot Yoga: Healthy If You're Healthy</em></a>]

As they near retirement, over half (55%) of those surveyed begin to focus on generating a stable income in retirement.

"My employer could do a better job of laying out scenarios of how the drawdown would work," says Rich, a 55 year old plan participant in his survey comments. "People typically say 3%, 4% or 5% is a target, but I could use more specifics."
[Read: <a target="blank" data-add-tracking="true" href=""><em>Here Are the Top 5 Luxury SUVs of 2013</em></a>]

"As workers shift from saving for retirement to spending in retirement, they are evaluating their investment choices and looking to plan sponsors to help them make that transition," Axsater adds. "Plan sponsors should seize this opportunity to begin a dialogue with participants about how to achieve retirement security,"

Other findings from the survey include:
  • 55% see generating a stable income as a top priority versus generating returns (27%), or preservation of capital (25%)
  • 69% believe that some sort of guaranteed monthly income stream will be necessary in addition to Social Security
  • 64% of respondents plan to take monthly withdrawals to cover their expenses while only 6% prefer a lump sum payout from their plans

--Written by Hal M. Bundrick

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.45 -1.50%
FB $116.86 0.11%
GOOG $693.10 0.30%
TSLA $246.36 -0.54%
YHOO $36.42 -0.45%


Chart of I:DJI
DOW 17,754.23 -76.53 -0.43%
S&P 500 2,063.70 -12.11 -0.58%
NASDAQ 4,775.2860 -30.0050 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs