Marquee Header

2022 U.S. Retirement
Market Outlook

Three Themes Shaping the
U.S. Retirement Landscape

In our inaugural Retirement Market Outlook, we examine the widening retirement savings gap, the focus on workers’ financial wellness, and the impact of expected lower market returns.

  • The widening retirement savings gap—and efforts to close it—will play a significant role in shaping the retirement landscape.
  • Financial wellness, which recognizes that competing savings needs and debt are significant barriers to successful retirement outcomes, is now seen as a critical solution to helping workers and retirees meet their goals.
  • Capital markets appear poised to enter a new era of lower expected returns. Retirement savers and retirees will need to plan and adjust accordingly.

Access and Adequacy:

Closing a Widening Retirement Savings Gap

Financial Wellness:

Redefining the Path to Retirement Success

The Investment Landscape:

Implications for Retirement Savings and Spending

Access and Adequacy: Closing a Widening Retirement Savings Gap

With the retirement savings gap approaching $4 trillion, we expect a strong focus on making defined contribution plans more accessible and adequate.

Key Insights

  • The retirement savings gap—the difference between what Americans have saved for retirement and what they will need—is widening in significant ways and was worsened by the pandemic.
  • Almost 40% of workers are not covered by workplace retirement plans, and disparities exist for Black, Latinx, and women savers.
  • We see some emerging best practices from employers to improve retirement outcomes, including expanding access, improving plan design, and offering financial wellness tools.

Financial Wellness: Redefining the Path to Retirement Success

Financial wellness is now recognized as a critical solution to helping workers and retirees meet their goals.

Key Insights

  • Many workers report high to moderate levels of financial stress relating to managing debt and health care expenses, budgeting, saving for retirement, and other goals.
  • 78% of employees rely on their workplace for advice and support on how to achieve their financial goals.
  • Employers can help by offering educational programs, financial wellness tools, tailored messaging, and special services.  

The Investment Landscape: Implications for Retirement Savings and Spending

We expect returns that are lower than those seen in previous periods, requiring savers and retirees to plan and adjust accordingly.

Key Insights

  • With elevated equity valuations, rising bond yields, and other market risks on the horizon, retirement investors need to maintain a consistent, long-term investment focus.
  • Investors may need to reduce their expected standard of living or even delay retirement.
  • Retirement investors can increase their chances of success by increasing exposure to growth assets.

Source Information: T. Rowe Price research shared throughout this report as “our research” was compiled from the sources listed on pages 13-14 of the full article.

Contact your T. Rowe Price representative to find out how we can take your plan to the next level.