Preparing For Retirement

Longer life expectancies have increased the retirement savings needed by most Americans, causing many workers to worry about retirement and beyond. Statistics from three separate studies on how working Americans are preparing (or failing to prepare) for retirement are below:

• Around 60% of workers have less than $25,000 in savings and investments.
• Only around 14% of workers feel certain they have enough saved for retirement to live comfortably.
• Around half of workers do not have access to a retirement savings plan.
• Only 28% of workers are very confident they will be employed for as long as they need.
• Sixteen percent of investors predict that their investments will increase in value.
• Sixty percent of investors are not confident they will have enough saved to retire.
• Investors expect to retire at an average age of 62 and live 22 years in retirement.
• Around 12% of retirees stated that either they or their spouse had purchased a financial product that pays a guaranteed monthly sum for life.
• Only 21% of retirees feel confident they have enough saved for retirement.
• Only 21% of workers and 24% of retirees have sought financial advice from a professional.

See Many Workers Have Savings Below $25K, EBRI Says, Financial Advisor Magazine, Mar. 13, 2012.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.