Success Story: Retiring Soon

Over the last few years, the looming specter of uncertainty surrounding Social Security has grown among some American workers who will soon retire. While much has been written about the potential demise of Social Security, Fisher Investments believes that those fears are overstated. Social Security remains a vital piece of the income puzzle for many retirees.

As workers get older, saving for retirement becomes more pressing because the amount of time an individual has to save—known as their “time horizon”—it's constantly shrinking. And if that individual has not established any retirement savings by the time they’re nearing retirement age, it’s likely they’ll have to get creative in their final earning years to live comfortably during retirement.

During an on-site enrollment for a new Fisher Investments 401(k) Solutions client, Retirement Counselor Andrew met with an employee named Dorothy^* who was concerned about being able to retire and use social security. Our client, a retail and supplier business, employed many workers in older demographics that were not on track for retirement and with virtually no savings—and this person was one of them. That’s why we were brought in: To help employees take full advantage of their retirement benefits. Andrew met with Dorothy one-on-one to have a private conversation about her retirement goals.

Dorothy had very little in retirement savings, and was worried Social Security may not exist when she retires. She did not have much money saved for retirement, and a gap analysis—an examination of how much money it would take for her to reach her savings goal—revealed that it would not be possible for her to catch-up on her own. She thought her only option was to start claiming Social Security early and then save it.

Andrew listened to Dorothy’s concerns and helped her develop a plan based on her current life situation and future retirement goals. He explained that each year she delays claiming Social Security, her monthly benefit would increase by 8% for the rest of her life. Because it would be difficult to save that much on her own, Andrew explained what her 401(k) savings combined with the Social Security benefit increase could do for her retirement goals.

With Fisher Investments 401(k) Solutions, the education we offer in this example empowers employees to make informed decisions for their retirement. By giving participants this knowledge, increases in contribution rates are common: Businesses we work with see an 85% increase in employee contributions as a result of our on-site enrollment meetings.¹

¹Fisher Investments enrollment data as of 12/31/2020.

^* Name changed for employee confidentiality

SEC Regulatory Disclaimer: Case Studies are selected based on how they illustrate common 401(k) plan goals. It is not known whether the clients approve or disapprove of Fisher Investments 401(k) Solutions, or the services provided.