Emotional factors play a key role in retirement savings success, and most respondents to a recent survey indicated they want to enjoy life, feel financially secure and have peace of mind in their retirement.
A substantial number of those considered to be “successful savers” are confident they will achieve their life goals in retirement and identified key priorities for realizing them, PNC Financial Services Group finds.
Specifically, among those planning for retirement, three quarters listed living comfortably as a top goal, while 70 percent answered travel and 56 percent selected spending more time with family as top on their list.
Of those surveyed, 72 percent are confident they will achieve these goals.
“We understand that consumer decision-making about significant purchases or investments, such as buying a new car, a first home or many other products is heavily influenced by emotion. Similarly, we believe emotions are in play when people think about retirement,” Rich Ramassini, director of strategy for PNC Investments, said in a statement. “Our survey results reinforce the importance of setting goals and monitoring plans to balance those emotions.”
To that end, most successful savers feel they are taking the concrete steps they need to make those goals achievable.
Among respondents currently participating in a retirement plan, 70 percent are investing with investment firms, banks and brokerage firms, and in mutual funds, and 77 percent regularly revisit their plans.
Further, 53 percent are investing in employer-sponsored retirement plans. In addition, almost half (45 percent) have been saving for at least 20 years.
Other key findings in the survey include:
- Those still working said they expect 40 percent of their spending to go to basic living expenses, followed by travel (19 percent) and healthcare (18 percent).
- More than a third (38 percent) are not actively paying off any expenses before retirement, while 31 percent are attempting to pay off their mortgage and 10 percent are paying down credit card debt.
- Though they care about the future for their children and grandchildren, older baby boomers (age 65-75) are not looking to leave all their money behind. Eighty-six percent want to live comfortably in retirement.