Americans concerned about retirement income
The Social Security privatization debate is closely linked to retirement planning for Americans. It is no secret that as a nation, we are not big fans of saving. Secondly, our values have reached a point that in vast majority of cases, we can not expect our children to take care of ourselves in old age or to pay for us. In other words, Social Security is the only hope that most low-income and middle-class Americans have when they retire. (Related article: AARP strongly opposes privatization of Social Security)
Nearly half (45 percent) of the U.S. workforce does not believe it will have enough money set aside for a comfortable retirement. This according to the latest national Hudson retirement survey, which also finds that three-fourths (74 percent) of U.S. workers plan to work at least part-time during their retirement years. Forty-one percent of workers plan to retire before they reach the age of 65. Though 47 percent of employees believe that their company does a good or excellent job educating its workforce about retirement planning and benefits, a nearly equal percentage rate their organizations as fair or poor. Individuals in higher income brackets give more complimentary appraisals.
Nationally, workers do not expect company pensions and Social Security to provide significant retirement income. Half (52 percent) report that personal savings will provide the biggest share of their income after they stop working, while only 20 percent expect company pensions to do so. Twenty-one percent of workers expect social security to comprise the biggest chunk of their retirement income. (Related article: Americans totally confused about the Social Security privatization issue)
A third (31 percent) of workers in the age group of 50-64, who are fast approaching traditional retirement age, anticipate that Social Security will provide the biggest income contribution, although a plurality (40 percent) expect personal savings to do so. However, the younger workforce (18-29) is no longer taking Social Security for granted. Only 14 percent expect it to provide the biggest share of their retirement income. Workers under 40 are also more likely to predict they will not work during their retirement years than those 40 and older.
What can we learn from this survey?
Nearly half (45 percent) of the U.S. workforce does not believe it will have enough money set aside for a comfortable retirement. This according to the latest national Hudson retirement survey, which also finds that three-fourths (74 percent) of U.S. workers plan to work at least part-time during their retirement years. Forty-one percent of workers plan to retire before they reach the age of 65. Though 47 percent of employees believe that their company does a good or excellent job educating its workforce about retirement planning and benefits, a nearly equal percentage rate their organizations as fair or poor. Individuals in higher income brackets give more complimentary appraisals.
Nationally, workers do not expect company pensions and Social Security to provide significant retirement income. Half (52 percent) report that personal savings will provide the biggest share of their income after they stop working, while only 20 percent expect company pensions to do so. Twenty-one percent of workers expect social security to comprise the biggest chunk of their retirement income. (Related article: Americans totally confused about the Social Security privatization issue)
A third (31 percent) of workers in the age group of 50-64, who are fast approaching traditional retirement age, anticipate that Social Security will provide the biggest income contribution, although a plurality (40 percent) expect personal savings to do so. However, the younger workforce (18-29) is no longer taking Social Security for granted. Only 14 percent expect it to provide the biggest share of their retirement income. Workers under 40 are also more likely to predict they will not work during their retirement years than those 40 and older.
What can we learn from this survey?
- There is no definitive poll yet that provides an accurate picture of retirement planning and perspectives on privatization of Social Security.
- Americans are in denial about their financial situations. When the savings rate being among the lowest in the world, and the consumer debt being among the highest in the world, it is interesting to see that half of the people in this survey expect to use their personal savings to help them live in retirement.
- Americans need to spend more time planning their financial future and learning more about the details of the Social Security privatization debate so that they can make more realistic opinions.
posted by eCreativa Media @ 2:28 PM
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