Even with an economy running at full tilt, a majority of American voters are less confident about their retirement prospects than they were five years ago, according to a new survey from the Certified Financial Planner Board of Standards.
The election-night survey of more than 1,000 American voters showed that despite the strong economy:
- More than 60 percent of working voters feel it is now harder to retire on time than it was five years ago
- The majority predict it will remain difficult to retire on time five years from now
- While almost two-in-three are confident in their ability to maintain their savings as they transition to retirement, slightly less than half think their savings will last them through retirement.
“By 2060, there will be more than 98 million Americans who are 65 or older,” said CFP Board Chief Executive Officer Kevin Keller, CAE, in a statement. “People are also living longer than ever before. In many cases, retired Americans will need to support themselves for 10, 15, 20 or even 30 years, meaning people need to save earlier, save more and be better prepared for the financial challenges of retirement.”
However, it seems many Americans are struggling to turn this advice into a reality.
Two-thirds of those surveyed have less than $100,000 in household financial assets outside of their primary residence, resulting in American voters’ doubts about having enough savings to last comfortably throughout retirement.
There is a silver lining—today’s political climate and the current state of affairs in our country is positively impacting Americans’ perspective when it comes to managing their finances, with one-in-three saying they are now much more proactive about setting and following a financial plan.
While most of those surveyed report they are not working with an advisor now, nearly 60 percent are likely to work with an advisor for their retirement needs.
However, they may be waiting too close to retirement to get the advice they need, with 23 percent waiting to work with a financial planner just three to five years in advance of their target retirement date.
When it comes to qualities Americans look for when choosing a financial advisor, the majority want someone who can provide a comprehensive plan that takes their holistic financial situation into consideration (82 percent) and believe their financial advisor should always work in their best interest (79 percent).
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
