State Street Global Advisors’ Retirement Confidence Survey Highlights Global Differences in Participants’ Financial Wellb...
October 04 2016 - 1:00PM
Business Wire
Financial Wellness Index Tracks Participants’ Perceptions of
Stress, Control, Debt, Health Costs and Retirement Savings
State Street Global Advisors (SSGA), the asset management
business of State Street Corporation (NYSE:STT), today released
findings of its fourth annual global retirement confidence survey.
The survey found that confidence remained relatively stable in
2016, and is higher than what was reported in 2013. Respondents in
the US report the highest confidence with more than half of
respondents reporting that they feel they are on track to meet
their retirement goals. Confidence is less strong in the Republic
of Ireland (Ireland) and the United Kingdom (UK) with respondents
reporting confidence at 22 percent and 36 percent respectively.
This year SSGA introduced a financial wellness index to the
survey to assess a broader picture of a participants’ financial
life, including insights into the sufficiency of their financial
resources to meet their needs and obligations, the manageability of
their debt, overall sense of financial stress and their ability to
deal with financial emergencies.
“The introduction of the wellness index gives us a more complete
view into participants’ perceptions and feelings about their
financial life. While confidence can provide a signal of an
employee’s perceived retirement future, the wellness index gives us
a picture of their life today,” said Fredrik Axsater, global head
of SSGA Defined Contribution.
US respondents report greater financial wellness scores with 46
percent showing high financial wellness compared to 33 percent of
respondents in the UK and 13 percent of respondents in Ireland.
2016 SSGA Wellness Index
Results
US
UK
Ireland High
46%
33%
13%
Medium-High
26%
31%
24%
Medium-Low
20%
25%
36%
Low
8%
11%
27%
“The good news is that employees’ reported confidence in their
ability to retire remains higher than a few years ago. However, we
believe it is important to look beyond reported confidence and have
a broader understanding about how employees feel today about their
financial lives. In fact, the wellness index scores appear to be a
more powerful driver of behavior than one’s financial literacy,”
Axsater continued.
Other key findings include:
- The majority of participants feel
more financially stable: The majority of US and UK respondents
feel more financially stable; however, employees in Ireland feel
less in control and sometimes run low on money.
- I rarely or never need to borrow money
to make ends meet (75% US, 70%UK, 56% Ireland)
- I can afford a good standard of living
for my family (75% US, 72% UK, 54% Ireland)
- I am saving enough for my retirement
(52% US, 45% UK, 28% Ireland)
- I don’t feel like I’m in control of my
financial situation (16% US, 16% UK, 25% Ireland)
- I don’t feel secure with my employment
at my existing firm (15% US, 21% UK, 29% Ireland)
- I sometimes run low on money to spend
on basic necessities (15% US, 15% UK, 25% Ireland)
- I have an unmanageable amount of debt
compared to income (14% US, 9% UK, 17% Ireland)
- I often have trouble paying my monthly
mortgage or rent (7% US, 6% UK, 15% Ireland)
- US participants are the most
satisfied with employer involvement: while all countries showed
improvement over 2015 levels, more than half (56 percent) of US
respondents are satisfied. Ireland made the greatest stride over
the past year, with a 12 percent increase in satisfaction versus
2015.
- Financial literacy lags: the
survey respondents were also tested on their financial literacy
based on a widely-accepted quiz comprised of eight basic financial
questions. In the US only half got 7-8 questions correct and in the
UK and Ireland, the scores were lower 39 percent and 20 percent
respectively.
“Employers should view increased satisfaction and stronger
financial stability as a sign that retirement readiness is
improving,” continued Axsater. “Bringing financial wellness
indicators into the picture can help employers focus on additional
worries, such as debt management or emergency savings, that may be
impacting how employees feel about and prepare for retirement.
Seeing the bigger picture can help build a stronger future.”
To learn more, read the full report and see tips for plan
sponsors, click here.
About the Retirement Confidence Monitor
The Retirement Confidence Monitor is designed to track changing
attitudes and behaviors relative to defined contribution plans. The
goal is to compare and rate behaviors of retirement savers that are
more and less conducive to successful retirement outcomes in order
to provide overall guidance to plan sponsors and advisors.
Interviewing took place across several SSGA global markets (US, UK,
and Republic of Ireland). This survey was conducted in partnership
with TRC Market Research. The Financial Wellness Index was
co-created in partnership with Warren Cormier of Boston Research
Technologies. Data were collected in May 2016 through 12-minute
internet surveys using a panel of 2,817 retirement savers, aged 22
to 70, who were working at least part-time and participated in
retirement savings plans/schemes, with a sampling error of +/- 2.97
percent.
About State Street Global Advisors
For nearly four decades, State Street Global Advisors has been
committed to helping financial professionals and those who rely on
them achieve their investment objectives. We partner with
institutions and financial professionals to help them reach their
goals through a rigorous, research-driven process spanning both
active and index disciplines. We take pride in working closely with
our clients to develop precise investment strategies, including our
pioneering family of SPDR ETFs. With trillions* in assets under
management, our scale and global footprint provide unrivaled access
to markets and asset classes, and allow us to deliver expert
insights and investment solutions.
State Street Global Advisors is the investment management arm of
State Street Corporation.
*Assets under management were $2.3 trillion as of June 30, 2016.
AUM reflects approx. $40 billion (as of 6/30/2016) with respect to
which State Street Global Markets, LLC (SSGM) serves as marketing
agent; SSGM and State Street Global Advisors are affiliated.
Important Information
Investing involves risk including the risk of loss of
principal.
The information provided does not constitute investment advice
and it should not be relied on as such. It does not take into
account any investor's particular investment objectives,
strategies, tax status or investment horizon. You should consult
your tax and financial advisor.
All material has been obtained from sources believed to be
reliable. There is no representation or warranty as to the accuracy
of the information and State Street shall have no liability for
decisions based on such information. All information has been
obtained from sources believed to be reliable, but its accuracy is
not guaranteed. There is no representation or warranty as to the
current accuracy, reliability, or completeness of, nor liability
for decisions based on such information and it should be relied on
as such.
State Street Corporation, One Lincoln Street, Boston, MA
02111-2900
(c) 2016 State Street Corporation - All Rights Reserved
CORP-2242
Exp. Date: 9/30/2017
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State Street CorporationAndrew Hopkins, +1
617-664-2422Ahopkins2@StateStreet.com
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