The Voya Retire Ready Index™ study measures how ready Americans are for retirement – and offers some ideas for steps you can take to improve your own retirement readiness.
Measuring Retirement Readiness
The Voya Retire Ready Index™ measures retirement readiness across three essentials areas:
Knowing: Level of knowledge and awareness of how to prepare financially
Planning: Steps taken to define retirement goals and plan for financial needs both to and through retirement.
Having: Adequate savings or assets to generate sufficient income in retirement.
The study shows that there is room for improvement in overall retirement readiness, especially in the area of planning. On a 10-point scale, Workers only scored 3.0 on average in their planning activities.
Voya Retirement Ready Index results: On a scale of 1 to 10, workers scored an average of 5.8 for knowing, 3.0 for planning, and 3.5 for having. The average score was 4.1
Are there any “role models” when it comes to readiness?
The Voya study found that a subset of Workers who averaged the highest scores were more proactive and well-prepared for retirement, and took many important steps in planning for retirement, including:
Workers who had the highest average scores, took the following proactive steps for retirement: 77% used web-based retirement calculator, 99% contributed to workplace retirement plan, 85% at least $100K in life insurance coverage, 81% more than 50K in savings, 75% tried to calculate how much income they will need to replace in retirement, 82% specific strategy for investments
Steps you can take to become a retirement ready “role model”
Voya offers a range of tools and services that can help you make progress on your path to retirement. Sometimes taking just one small step can give you the information you need to think about and take action on planning for your retirement.
Analyze your monthly budget to see if you are spending wisely or could be saving more for retirement. Our Monthly Home Budget calculator can help you find ways to save – and potentially help you save more.
Estimate your monthly retirement income using myOrangeMoney™ to see how much your current savings may provide in retirement.
Talk to a financial advisor to ask questions, get some advice or to put together a financial plan that can help you better understand your roadmap to retirement.
This material is provided for general and educational purposes only; it is not intended to provide legal or investment advice.
Securities and investment advisory services offered through Voya Financial Advisors, Inc., member SIPC