First it was about chasing returns; is it now about chasing retirement?
Although 90 percent of retirement savers say accumulating enough is an important factor in their ability to enjoy their retirement (obviously), a significant portion is worried they’re already falling behind.
According to a new study from Allianz Life of Americans age 45-65 actively saving for retirement, these “chasers” make up half of the total respondents, and think they need to catch up on their retirement savings but need help to understand potential solutions to close their savings gap.
For the purposes of the study, chasers are defined as those who are saving but have either fallen behind on where they should be, wish they could accumulate savings faster, or worry that if they don’t increase savings soon it will be too late to have a comfortable retirement.
More than eight in 10 feel they have fallen behind where they should be in saving for retirement compared to just 4 percent of non-chasers, and the same percentage worry it will be too late for them to have a comfortable retirement (versus 2 percent for non-chasers).
The vast majority of chasers (98 percent) also say they wish there was a way they could accumulate funds faster to make up for lost time versus 41 percent for non-Chasers, but nearly two-thirds of chasers also say they can’t take the risk of investing in high risk/high reward financial products.
“Among those Americans actively saving for retirement, our study finds a dramatic difference between those who feel on track and those who feel behind, with this subset wishing for ways to catch up but without taking on too much risk,” Paul Kelash, vice president of Consumer Insights for Allianz Life, said in a statement. “While it’s a positive that they are actively saving for retirement, the level of anxiety is concerning, and many are simply not aware of potential solutions to help them catch up.”
Despite having a mean retirement portfolio of more than $400,000, chasers struggle to keep up with their retirement savings goals and may need more education about financial products.
More than half say they have too many other expenses right now and one in five say they are saving for other financial goals. As a result, two-thirds of Chasers fear they will run out of money in retirement, and more than six in 10 believe they will need to keep working instead of retiring.
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.