Background: In late summer 2023, RRC Fellows Toni Brown and Jody Strakosch conducted interviews with over 30 individuals representing 21 RRC member firms about their perspectives on retirement decision-making, including retirement income.

They asked three primary questions, including:

1. Do you think individuals have the information they need to make decisions about retirement? What do you think is missing?

2. What has your firm done that’s been helpful, or not so helpful?

3. How can we (the DC ecosystem) develop a decision-making framework that helps individuals make these decisions?

Findings: Several themes emerged from these interviews, especially related to concerns about individuals’ awareness and preparedness for retirement.

There is a need for a deeper understanding of Social Security claiming strategies, especially timing.

Better longevity literacy is vital so that individuals can improve the accuracy of their financial planning.

Integrating simplified language to aid in transitioning from saving to spending mentalities during retirement is important.

Recommendations were made for DCIIA to assume a greater role in providing independent, objective information directly for participants within the retirement system. In turn, the RRC has launched a two-phase project to meet this need.

For the first phase, in qualitative focus groups, the RRC will interview retirees to identify key advice that individuals wish they had known before retirement. This essential knowledge will be compiled in a "10 Things You Need to Know before Retirement" guide to cover fundamental concepts such as budgeting, Social Security claiming strategies, longevity estimation, and investment principles to assist individuals in understanding retirement expenses. The second phase will be a quantitative survey that samples pre retirees and retirees to gauge their preferences on retirement income features.

Bottom line: The interviews revealed a critical need for individuals to grasp retirement fundamentals in a clear, straightforward, and actionable manner. It is evident that the DC industry could significantly contribute to addressing this need by providing accessible, unbiased information and educational resources for participants.