In news to anyone in financial services less than five minutes, it appears a majority of workers in multiple countries underestimate how much they will need to save for their retirement. New research from independent financial advisory firm deVere Group puts the number at nearly 80 percent
More than 600 new and potential clients in the United States, the United Kingdom, Hong Kong, Australia, and South Africa participated.
“In the last few years, it has become clear that working age people do increasingly understand the need to save for their retirement,” Nigel Green, deVere Group CEO and founder, said in a statement. “They know that saving for their retirement is now, without question, a personal responsibility for each and every one of us. However, what is alarming is that the vast majority do not know just how much they will need to save. This black hole in the detail—not knowing how much they will need in something as fundamental as funding their retirement—is extremely concerning indeed.”
According to Green, this underestimation is true across all incomes, working age brackets and nationalities.
He goes on to say: “When our consultants start to work with new clients to tailor-make a financial plan, the clients are typically shocked when it is set out for them how much they need to be saving to fulfil their own retirement ambitions. They have usually considerably underestimated the funds they will need.
“Despite 78 percent of those who took part in this research having unrealistic expectations about their retirement savings, at least now they are fully in the picture and can start getting serious about funding the retirement they want,” the deVere CEO concludes. “There are ways to plan and maximize retirement savings at every stage of your working life.”
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.
