Despite one of the strongest economies in decades, only one in four Americans feel financially prepared for retirement.
More alarming, three in 10 do not know if their current employer offers a retirement savings plan, according to new research released by CFP Board.
Nearly 79% also do not feel reassured that they have the best retirement savings strategies available to them, and 25% say saving for retirement is too complicated.
A report commissioned by CFP Board and drafted by Drinker Biddle’s Fred Reish on the topic, will be released by the end of the year.
“With so many Americans getting a late start on retirement savings, the odds are high that they will be unprepared to maintain the lifestyle they’re accustomed to living,” Kevin Keller, CEO of the CFP Board, said in a statement. “Americans know how important it is to save for retirement, but the truth is more than a third of those surveyed are overwhelmed by the process and, critically, many do not understand what products and resources are available to them.”
The age to start saving
The survey also showed that nearly half of Americans think adults should start saving for retirement in their 20s, but few follow their own advice.
More than one in four delay saving for retirement until their 30s, while another 15 percent wait until their 40s, and approximately one in 10 Americans wait to start saving for retirement until after 50 years of age.
“The nuances to retirement savings vary based on circumstantial factors, such as what you can afford to save and what savings programs are available to you,” Keller said. “This survey shows there is still a lack clarity about what options are available to retirement savers, including ethical and competent financial advice. It’s time for Congress, the Administration and other stakeholders, including CFP Board, to come together to develop new solutions to meet the retirement crisis that we will inevitably face.”
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.
