PGIM Retirement
Intended for Financial Professional and Institutional Plan Sponsor Use.

2016 Retirement Preparedness Study

A new study, conducted by PGIM Investments explores the challenges facing Americans as they move toward retirement.

Achieving Retirement Readiness Isn’t Easy

2016 Retirement Preparedness Survey Findings

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Americans are living longer and spending more years in retirement. PGIM Investments wanted to know how prepared both pre-retirees and retirees were in relation to meeting their retirement goals and objectives. What are adults currently doing to prepare for retirement? Do they understand the tools available to them? What do they wish they had done differently in their planning? Our 2016 Retirement Preparedness study explores the answers to these questions and more.

Key Findings

1

Savings

Saving for retirement is getting progressively harder for each generation. More than half (57%) of pre-retirees expect to have a more difficult time saving for retirement than their parents or grandparents did.

2

Investments

Overwhelmed with investment choices, individuals have little understanding about what they are invested in. Only about 6 in 10 investors say they are knowledgeable of how their assets are currently allocated between stocks, bonds, and cash (58%) or the types of products they are invested in (57%).

3

Planning

Far from reaching savings goals, individuals need a plan but have inertia. Nearly three-quarters (75%) of pre-retirees agree that they should be doing more to prepare for retirement, but 4 in 10 (40%) say they simply don’t know what to do.

4

Advice

Advisors play an important role in bridging the retirement preparedness gap. Less than half (44%) of individuals use an advisor, but those who do see the benefits.

Helpful Resources

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Expense Policy Statement Checklist

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Designing a Great 401k Plan in a Time of Transition

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About the Survey

Age 21 and up

Primary or shared responsibility in making household financial
/investment decisions

Employed full-time or part-time, self-employed, stay-at- home parent, or retired

The survey was conducted by Harris Poll on behalf of Prudential between July 20 and August 9, 2016. Results were weighted where necessary by age, gender, race/ethnicity, region, education, income, size of household, marital status, employment status (for non-retirees) and propensity to be online to bring them in line with their actual proportions in the population.

This website and its contents are intended for institutional or plan sponsor use.


These materials are for informational or educational purposes only. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. In providing these materials PGIM Investments is not acting as your fiduciary as defined by the Department of Labor. Please consult with a qualified investment professional if you wish to obtain investment advice.


The target date is the approximate date when investors plan to retire and may begin withdrawing their money. The asset allocation of the target date funds will become more conservative until the date which is ten years prior to the target date by lessening the equity exposure and increasing the exposure in fixed income investments. The principal value of an investment in a target date fund is not guaranteed at any time, including the target date. There is no guarantee that the fund will provide adequate retirement income.


A target-date fund should not be selected solely based on age or retirement date. Before investing, participants should carefully consider the fund's investment objectives, risks, charges and expenses, as well as their age, anticipated retirement date, risk tolerance, other investments owned, and planned withdrawals.


The stated asset allocation may be subject to change. It is possible to lose money in a target date fund, including losses near and following retirement. Investments in the Funds are not deposits or obligations of any bank and are not insured or guaranteed by any governmental agency or instrumentality.


The Prudential Day One Funds may be offered as mutual funds. You should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. The prospectus and the summary prospectus contain this and other information about the fund. Contact your financial professional for a prospectus and the summary prospectus. Read them carefully before investing.


0299923-00001 Ed. 12/2016