2022 Paycheck or Pot of Gold Study

MetLife Retirement & Income Solutions

2022 Paycheck or Pot of Gold Study

Feb 23, 2022

MetLife's study looks at the Great Retirement Decision. 

In this study: 

  • Do pre-retirees and retirees think it's valuable to have guaranteed retirement income?
  • Do retirees' experiences with taking a lump sum meet with their expectations? 
  • How quickly do retirees deplete their lump sums?
In the last five years

Looking at the state of today’s workplace, many employers are focused on the “great resignation” (a mass exodus from the workforce), or the “great reshuffle” (job or career moves that better align with workers’ values). However, there is another workplace priority that needs attention now: the “great retirement decision.” 

The “great retirement decision” is whether to take one’s accumulated savings as a paycheck (i.e., monthly annuity payments) or a perceived “pot of gold” (i.e., a lump sum) – or some combination of the two.

WidespreadPraise

90
%

of pre-retirees think it's valuable to have guaranteed monthly income to pay their bills

89
%

of pre-retirees would like a partial annuity/partial lump sum option

82
%

of pre-retirees would pick the annuity over the lump sum if they had to choose

2022 Paycheck or Pot of Gold Infographic

View Key Findings

Not All Retirement Income Options Created Equally

Income annuities purchased at the point of retirement, such as an immediate annuity or a longevity annuity with an income benefit paid later in life, are among the most efficient ways for workers to access guaranteed monthly income from a DC plan. 

Nearly All Retirees Who Took the Annuity Tout Its Positive Impact

Their budget is more predictable
96%
They are better off financially
96%
They feel more financially secure
95%
It makes it easier to pay for basic necessities
94%
They have greater flexibility for potentially more aggressive strategies with other investments
87%

Demographic Differences on Retirement Income Security

View the Infographic

Did you know?

More women (43%) than men (29%) have already depleted their lump sums in retirement

Conclusion

By expanding access to guaranteed lifetime income solutions, employers can empower plan participants to confidently transition into retirement – and help ensure their retirement savings lasts. 

Want more insights from the 2022 Paycheck or Pot of Gold Study?

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Lifetime Income Solutions

Empower employees to confidently retire knowing they will never outlive their savings with guaranteed lifetime income solutions designed to enhance defined contribution retirement plans.

MetLife’s Retirement & Income Solutions division, the company’s institutional retirement business, issues products through Metropolitan Life Insurance Company (MLIC) and Metropolitan Tower Life Insurance Company (MTL), two wholly owned subsidiaries of MetLife, Inc. Retirement & Income Solutions issues products for transferred pension liabilities, stable value, institutional income annuities, benefits funding and structured settlements.

All guarantees are subject to the financial strength and claims-paying ability of the issuing MetLife company.