The Transamerica Center for Retirement Studies ® (“the Center”) recently released its 13th Annual Retirement Survey.
Since 1999, the Center has conducted a national survey of U.S. business employers and workers regarding their attitudes toward retirement. The overall goals for the study are to illuminate emerging trends, promote awareness, and help educate the public.
This year 3609 full and part-time workers were surveyed from companies who employed a minimum of 10 employees.
Take a moment to read some of the highlights and compare the results with your own retirement vision. How do your goals and objectives compare to the workers in this survey?
1) Since the recession, more than 60 percent say they’ve lost confidence in their retirement goals.
2) 70 percent continue to admit they don’t know as much as they should about retirement investing and continue to have a limited understanding of asset allocation principles.
3) Workers estimate that they will need to save $500,000 (median) to feel financially secure when they retire. Nearly half continue to guess at the amount of money they will need in retirement versus a more formal calculation.
4) 86 percent of workers in their 60s expect to work after their 65th birthday.
5) Working during retirement is born mostly from a need rather than enjoyment.
6) Majority of workers surveyed do not feel confident that they are building a large enough nest egg.
7) Most do not have a back up plan for retirement income if they are unable to work.
8) Most workers don’t have a contingency plan in place if they wind up retiring earlier than expected.
9) “Outliving savings” and “not being able to meet basic financial needs” remain the most frequently cited single greatest fears about retirement among workers.
10) A large majority of workers expect that their standard of living will either decrease or stay the same in retirement.
“American workers are adjusting their expectations of retirement, including working past age 65 and planning to work part‐time in retirement,” said Catherine Collinson, president of the Transamerica Center for Retirement Studies®. “American workers have reshaped their vision of retirement, now it’s time to provide an updated roadmap to help them achieve retirement income to last throughout their lifetime.”
Following careful analysis, The Transamerica Center for Retirement Studies® proposes the following definition of Retirement Readiness:
A state in which an individual is well‐prepared for retirement, should it happen as planned or unexpectedly, and can continue generating adequate income to cover living expenses throughout his/her lifetime through retirement savings and investments, employer pension benefits, government benefits, and/or continuing to work in some manner while allowing for leisure time to enjoy life.
For the complete 61-page survey click link below:
The Transamerica Center for Retirement Studies 13th Annual Retirement Survey 2012 – Redefining Retirement: The New ‘Retirement Readiness’
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