Meeting the Retirement Challenge has been saved
Meeting the Retirement Challenge
New approaches and solutions for the financial services industry
The Deloitte Center for Financial Services conducted a survey of nearly 4,500 consumers to generate insights into how financial institutions might develop new approaches and solutions by better understanding the attitudinal and behavioral constraints preventing consumers from taking more control of their retirement destiny.
The survey findings reiterate that many people are not doing enough on their own to prepare for retirement, and as a result, feel insecure about their financial future.
Based on survey conducted by the U.S. Deloitte Center for Financial Services, this report analyzes the five barriers inhibiting many consumers from taking a more disciplined approach to setting their retirement goals and how financial services institutions may be able to overcome them.
The fact that so many Americans are not adequately prepared for retirement has been widely documented. However, in considering potential solutions to meet this challenge, the role of financial institutions is often overlooked.
The financial services industry has certainly devoted considerable resources to this effort. Furthermore, there are hundreds of thousands of financial professionals of various stripes — financial planners, advisors, brokers and insurance agents — educating, marketing and offering retirement advice to millions of Americans.
So why is it that despite this substantial focus on retirement products and services, the industry’s efforts have fallen short? Why are there so many who do not have a formal plan for retirement, and don’t work with professionals to help them prepare such a plan? And why is there such a fundamental disconnect between the financial services industry and the consumers who so acutely need such advice and solutions?
To help the financial services industry come to grips with this conundrum, the Deloitte Center for Financial Services conducted a survey among nearly 4,500 consumers from a wide range of age and income groups. The goal was to generate insights into how financial institutions might develop new approaches and solutions by better understanding the attitudinal and behavioral constraints preventing consumers from taking more control of their retirement destiny.
The survey findings reinforce that many people are quite aware that they are not doing enough on their own to prepare for retirement. As a result, they feel far less secure about their long-term financial future. The survey also identified a number of reasons why the inertia on retirement planning persists despite extensive efforts by insurers, banks, mutual funds and brokerage firms to help consumers address this challenge.
This report offers insights about each of these barriers, and suggests how the industry’s operating models and marketing approaches might need to evolve so that financial services providers can more effectively reach and serve consumers in tackling their retirement needs.