Americans need retirement help
Survey after survey points to one clear message: We are not prepared for retirement. According to the latest survey from Prudential, although near-retirees acknowledge they must take personal responsibility for their retirement security, a mere seven percent have formal plans in place to help them manage such issues as generating income, identifying expenses, and utilizing savings. This is very scary because if Social Security is privatized, then we are simply
not ready for the new world in which retirement income is expected to get lower and unstable. And if health insurance is any indicator of what to expect from retirement, we will neither save nor invest better, we will simply slide into poverty. (Related article: Retirement planning for those who have never planned)
In addition, more the one-third (34 percent) of participants in the survey say they need assistance to understand products and concepts -- such as income annuities and systematic withdrawal strategies -- that can help generate the predictable retirement income they seek. And a large percentage (35 percent) have yet to calculate the savings they need for a comfortable retirement or what their projected monthly living expenses might be in retirement (36 percent). In other words, Americans are simply living in denial.
Even more disturbing, when asked to give themselves a grade on their retirement preparedness, 53 percent awarded themselves a "C" or lower, casting grave doubt on the ability of older workers to "graduate" to a secure retirement. (Related article: Are you prepared for retirement?)
Other Notable Findings
not ready for the new world in which retirement income is expected to get lower and unstable. And if health insurance is any indicator of what to expect from retirement, we will neither save nor invest better, we will simply slide into poverty. (Related article: Retirement planning for those who have never planned)
In addition, more the one-third (34 percent) of participants in the survey say they need assistance to understand products and concepts -- such as income annuities and systematic withdrawal strategies -- that can help generate the predictable retirement income they seek. And a large percentage (35 percent) have yet to calculate the savings they need for a comfortable retirement or what their projected monthly living expenses might be in retirement (36 percent). In other words, Americans are simply living in denial.
Even more disturbing, when asked to give themselves a grade on their retirement preparedness, 53 percent awarded themselves a "C" or lower, casting grave doubt on the ability of older workers to "graduate" to a secure retirement. (Related article: Are you prepared for retirement?)
Other Notable Findings
- With retirement imminent, few near-retirees can estimate how much income they need to generate in retirement. The majority (90 percent) of near-retirees are either guessing how much income they would have or, even worse, simply do not have any idea of how much income they will be able to generate for themselves during retirement. (Related article: Personal finance tips for retirement)
- Near-retirees need to shift their focus from "accumulation" to "distribution." Although retirement for many Americans is imminent, more than six in ten near-retirees still focus on accumulating assets or achieving better returns instead of planning on how to generate a steady stream of retirement income. (Related article: Tips on asset management)
- The fear of outliving savings prevents many near-retirees from fully utilizing their financial resources to generate retirement income. Too often, near-retirees simply "do the best I can" with retirement planning, instead of focusing on specific, retirement-critical goals such as a targeted level of income. (Related article: Retirement planning tips for baby boomers)
- Nine in 10 near-retirees agree it is "very important" not to run out of money in retirement. This concern, however, may lead to "hoarding." Just 22 percent say they would tap into their savings for income early on in retirement, while most would try to hold on to their assets for as long as they could.
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posted by eCreativa Media @ 4:52 PM
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