The vast majority of Americans nearing retirement age harbor significant doubts and lack education about retirement offerings, according to a new survey released today by personal finance platform Unbiased.
The Unbiased Retirement Confidence Survey found that a considerable 76% of adults over 50—those presumably closer to their retirement years—expressed little or no confidence at all about retirement products available to them. The survey further found that only 30% of adults felt high levels of confidence about the retirement products available.
It’s hard to feel confident in something you know little about. The survey indicated an alarming lack of familiarity with certain financial products. Just over half of the respondents indicated a strong level of knowledge about 401(k)s, 403(b)s and IRAs, but only 12% felt they had a strong familiarity with annuities and only 11% claimed considerable knowledge about defined benefit plans.
When asked about what led to the lack of confidence, over a third of respondents said they “don’t know where to start,” and 34% found the financial jargon too complex.
One big reason for concern and confusion around retirement could be correlated to a lack of professional input. Nearly half of all respondents (47%) cited online searches and friends/family as their main sources for financial advice. Yet only 30% sought guidance from a professional financial advisor.
“The majority of Americans are not feeling confident about their retirement options,” said Unbiased founder and CEO Karen Barrett. “It also appears that many are not seeking professional help despite these concerns. Unbiased is on a mission to educate people about the importance of engaging a credentialed financial advisor—regardless of your wealth or circumstance—so that you can navigate your retirement options more confidently.”
Respondents also cited that their key concerns about retirement planning are driven by worries about “inflation” (59%) and “healthcare/unexpected risks” (56%), underscoring the unease felt by many Americans about the state of the healthcare system and how their health could affect their ability to support themselves in their later years.
Of those surveyed who did cite feeling confident about their retirement options, one out of four attributed that confidence to the fact they’d engaged a financial planner.
“Retirement can be an overwhelming concept and it requires careful planning. Far too many people put this off until it is too late, or don’t get the right advice,” Barrett said. “Planning for retirement is one of life’s biggest decisions and it is certainly one of those instances where you want to consider professional guidance.”
Unbiased, which claims to have held the top personal finance platform position in the U.K. for over a decade, expanded its presence to the U.S. in early 2023 with the launch of Unbiased.com. In the past year, Unbiased said it has assisted financial advisors in acquiring more than $20 billion in new assets under management (AUM) through its dynamic search feature that pairs consumers with finance professionals.
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