BMO Retirement Services Comments on Key Findings From EBRI's 2013 Retirement Confidence Survey

BMO Retirement Services Comments on Key Findings From EBRI's 2013 Retirement 
Confidence Survey 
CHICAGO, IL -- (Marketwire) -- 03/19/13 --  BMO Retirement Services
provided commentary on the 23rd Annual Employee Benefits Research
Institute's (EBRI) Retirement Confidence Survey, which was released
this morning. 
BMO Retirement Services, a sponsor of this year's EBRI study,
provides services to defined contribution plan sponsors and their
trusted advisors including plan design and administration,
participant tools and guidance and access to best-in-class
investments. With the capabilities of a North American-wide company,
BMO Retirement Services helps people achieve retirement security in
both the United States and Canada. 
"We congratulate EBRI on the completion of their latest installment
of this industry renowned survey. This year's study clearly indicates
that confidence is low among workers who, now more than ever, have
greater responsibility for their own retirement," said Matt Smith,
Managing Director BMO Retirement Services, North America. "While
employers can design plans that guide their employees' decisions, 49
percent of workers lack confidence that they will have enough money
to live comfortably throughout retirement." 
Smith noted a 20 percent decrease in worker confidence when compared
to the 2007 report as being particularly troubling and identified
several other notable findings in this year's edition that he found
of interest, including: 

--  Workers only partially rely on government or their employer for their
     With 33 percent of workers expecting Social Security to be
    a major source of income and only 31 percent expecting that from an
    employer sponsored pension, Smith noted the large gap that remains
    needs to be filled by personal savings, including employer sponsored
    savings programs.
--  The percentage of workers saving for retirement is chronically low.
    The study found that only 57 percent of all workers are currently
    saving for retirement while those with household incomes of less than
    $35K who report they are saving for retirement have decreased from 49
    percent in 2009 to 24 percent in the 2013 survey. Smith observed that
    the percentage of workers saving for retirement has remained
    chronically low for a decade, while steadily declining over the past
    five years. He recommends employers use auto-enrollment in a
    pro-active way to get workers into a retirement plan and increase
    overall enrollment.
--  The amount workers have saved for retirement is shockingly low.
    Almost half of the surveyed workers responded that they have saved
    less than $10K for retirement which, using a withdrawal rate of 5
    percent, equals only about $40 per month in income. "With these
    results being fairly steady over the past decade, it's clear that a
    large percentage of workers will not save without intervention," said
    Smith. "Encouraging employers to use auto-enrollment with workers is
    the first step towards bridging this gap and increasing savings
--  Most workers are willing to be helped.
     The study found that less than
    one-third of workers said they would opt out of a company retirement
    plan if their employer were to auto-enroll them at a 6 percent
    contribution rate. "These results show that employees are tolerant of
    higher default savings rates than most employers currently use -- the
    most typical default rate being around 3 percent. In addition,
    introducing auto-escalation of contribution rates is one way to
    further increase retirement savings," added Smith.
--  Less than half have tried to figure it out, and those who have, did it
     Only 46 percent of workers said they have tried to figure
    out how much money they would need to save to live comfortably in
    retirement. With little change in response from over a decade ago, 63
    percent of those workers who have tried to figure it out admitted they
    guessed or calculated their own estimate rather than getting help from
    an outside source. Smith noted, "Beyond plan design, workers need help
    achieving a secure retirement. That's why BMO Retirement Services
    provides plan sponsors with the tools and guidance their plan
    participants need to reach a secure financial future."
--  The expected retirement age is going up, but many unexpectedly retire
     For 88 percent of workers, their expected retirement age
    increased over the past twelve months. The most commonly cited reasons
    were the poor economy (22 percent), lack of faith in Social Security
    or the government (19 percent) and not being able to afford to retire
    (19 percent). However, when retirees were asked when they actually
    retired, nearly half (47 percent) said they retired earlier than
    expected -- of those retiring earlier than expected, over half cited
    health problems as a factor. Smith noted the importance of motivating
    people to save before they run out of time, adding, "A pro-active plan
    design can help workers meet their retirement goals and stay on track
    towards a comfortable retirement -- and the earlier, the better."

Find the full survey at 
About BMO Retirement Services
 BMO Retirement Services is an integral
part of BMO Global Asset Management and a premiere, award-winning
provider of retirement services.  
BMO Global Asset Management provides holistic, solution-driven
services to our institutional and high-net-worth clients. With a
nearly 40-year legacy of fiduciary service -- and goal of promoting
retirement readiness to our more than 500,000 participants in over
1,500 retirement plans -- our clients include retirement plans,
Taft-Hartley funds, government and public funds, not-for-profit
organizations and family offices. BMO Global Asset Management's
commitment to service excellence has led us to be recognized by
Pension & Investments as one of the Top 100 largest asset managers.  
We are a part of BMO Financial Group (NYSE: BMO), a fully diversified
financial services firm with $542 billion total assets and more than
46,000 employees as of January 31, 2013. 
BMO Retirement Services is a part of BMO Global Asset Management and
a division of the BMO Harris Bank N.A., offering products and
services through various affiliates of BMO Financial Group.  
BMO Global Asset Management is the brand name for various affiliated
entities of BMO Financial Group, that provide trust, custody,
securities lending, investment management, and retirement plan
services. Certain of the products and services offered under the
brand name BMO Global Asset Management are designed specifically for
various categories of investors in a number of different countries
and regions. Those products and services are only offered to such
investors in those countries and regions in accordance with
applicable laws and regulations. BMO Financial Group is a service
mark of Bank of Montreal (BMO). Investment products are: NOT FDIC
Copyright2013 BMO Financial Corp. 
Media contacts:
Anna Seifert 
BMO Global Asset Management 
Seuk Kim 
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