Here’s a shocker: Americans are worried they won’t have saved enough to meet the retirement savings goals they haven’t set. Indeed, a new survey finds that about a third of pre-retirees say they’ll never be able to save enough – and so it doesn’t matter when they start.
On the other hand, and consistent with other surveys, more than half (54%) say they have no idea how much they will need to save, according to Prudential’s 2016 Retirement Preparedness Survey. In fact, the report arguably would be better titled “Retirement Unpreparedness,” considering the findings.
Nearly three-quarters of pre-retirees agree that they should be doing more to prepare for retirement, but 4 in 10 say they simply don’t know what to do. There’s even less certainty when it comes to investing: 63% of Americans find investing complex and confusing, 66% say it’s harder to invest now than during their parents’ generation, and 64% are “overwhelmed” by the number of available choices.
Not that saving for retirement isn’t a priority; it was the top financial priority for pre-retirees, cited by 58% of survey respondents. “Having enough money to maintain lifestyle throughout retirement” came in second (41%), just ahead of “covering basic monthly expenses,” which was noted by 38%.
While individuals recognize the value of live advice – the top source cited to learn about investing is a professional financial advisor (37%) – only 44% of survey respondents reported taking advantage of this resource. Other sources of investing information:
- 34% - financial institution websites
- 29% - family or friends
- 25% - materials from financial companies
- 24% - newspapers, magazines, or books
- 23% - other online resources
A mere 20% rely on their employer, while 14% don’t use any resources at all.
While retirees wish they had saved more (45%), started saving earlier (42%), and retired later (20%), the survey found that about half of retirees (51%) retired earlier than they planned. Among those, half (50%) retired 5 or more years earlier than expected, and of those who retired earlier than expected, nearly half (46%) did so because they experienced health problems.
Yogi Berra once famously commented that if you don’t know where you’re going, you might not get there. Words that today’s pre-retirees might take to heart when it comes to retirement. Because even if those individuals don’t know where they’re going when it comes to retirement – well, there’s no time like the present to start.
