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Health & Fitness

8 Retirement Confidence Robbers Cited in 2012 Survey

Joe Lucey details the findings of this year's EBRI's retirement confidence survey and identifies ways to combat financial insecurity in retirement planning.

Last week the Employee Benefit Research Institute released its 22nd annual Retirement Confidence Survey which shows that Americans’ confidence in their ability to afford retirement remains at historically low levels. This is the longest running annual survey of its kind and sponsored by many of Wall Street’s major players such as PIMCO, Vanguard, AARP, Fidelity, Wells Fargo and American Express – to name a few. The report reveals record numbers of Americans remain unprepared for retirement.

Here are some of the latest survey’s findings:

1.    Confidence is Low – Only 14% of families are very confident that will have enough money to live comfortably in retirement.

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2.    Insecurity looms – 42% identify job insecurity as the most pressing financial issue facing the U.S. today.

3.    Not participating in 401(k)’s - 81% of Americans are eligible to contribute to employer sponsored plans such as 401k’s or 403b’s, yet only 38% of workers contribute to these plans.

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4.   Little savings – Many workers report little or no savings. In total, 60% of workers have less than $25,000 in savings.

5.    Working longer - 25% of all workers plan to continue working past age 65. This compares to a mere 11% of all workers 20 years ago in the 1991study.

6.    Unexpected retirements – Half of current retirees surveyed left the workforce unexpectedly following health problems, disability, or changes in their employer such as downsizing.

7.    No planning – More than half (56%) of workers report that they have not tried to calculate how much money they will need to have saved by the time they retire in order to spend confidently.

8.    Lack of advice – Only 21% of current workers and 24% of retirees use the advice of a professional advisor.

These findings are an eye-opening surprise for many people but they illustrate why it’s important to identify strategies that you can begin using today in order to move confidently towards your golden years in the future.

  1. Pay off debt and develop systematic savings plans as soon as possible.
  2. Insure against the unknown. Look into life and disability insurance during your working years and build emergency funds to weather unexpected storms. Guard against taking unnecessary risks with your investment allocations.
  3. As you transition to retirement, begin working with a retirement specialist who can help you maximize social security and any pension plans. Seek independent professionals who can help you plan your retirement.

 

Finally, it’s always a good idea to educate yourself. Visit Security Retirement Advisors’ website and download one of our free reports on topics important to your own unique planning or call Secured Retirement Advisors at 952-460-3260 for a complimentary consultation.

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