Retirement income planning

What happened: Recent articles highlight the importance of early retirement planning. A study found that nearly 1 in 5 Americans over 50 have no retirement savings. To retire with $120,000 annual income, one needs to save enough to achieve a safe withdrawal rate. A simple 3-step plan suggests retiring by 58 for those with little savings, starting a decade out.

Market impact: This narrative affects retirement planning services, financial advisors, and retirement-focused investment products. It also impacts the demand for safe, income-generating assets like bonds and dividend stocks. Companies offering retirement planning tools and services, such as Fidelity, Vanguard, and Charles Schwab, may see increased interest.

What to watch next: In Q2 2023, monitor earnings reports from major retirement planning service providers to gauge client interest and activity. Also, watch for the release of the 2023 Retirement Confidence Survey by the Employee Benefit Research Institute in April, which will provide updated insights into Americans' retirement preparedness. Lastly, track the performance of income-focused ETFs like the Vanguard High Dividend Yield ETF (VYM) and the iShares Core U.S. Aggregate Bond ETF (AGG).