Charles Schwab: We’re not Prepared for Retirement

Charles Schwab just released a study about retirement and it’s not encouraging. People are not saving more for retirement, despite the economy.

We’re kind of hoping retirement happens even though we’re not planning or ready for it. Many Americans are neither financially nor emotionally ready for retirement. Not even half of Americans currently save for retirement.

Here’s the scary part:
Survey respondents estimate they will need just over $1.2 million to comfortably retire. But the ones who say they are saving have put away an average of $194,000. And despite this they feel good about their progress. 41% percent of Americans feel positively about their retirement preparedness. 22% percent feel indifferent (hope that they can keep working or dream of winning the lottery?).

With the market down people need to put away MORE not LESS.

Other stats
-  Fifty-one percent of 55-63 year olds surveyed have saved less than $500,000, though they most commonly believe they will need $2,000,000 to retire comfortably.
- To help bridge the gap of over a million dollars, 52% will put off retirement. 47% report they have not changed their thinking about retirement.
- Apathy. Respondents aged 18-34 years old – 35 percent feel “indifferent” when it comes to their retirement preparedness. Why? 20% percent cite “fear” and “anxiety.” (fear is not a good investment strategy)

We’re a nation of optimists or we’re really good at denial. America, especially young Americans: the recession should be a wake-up call that we need to plan for our future.

Schedule a free 1-hour consultation about retirement with a Utah Certified Finanical Planner.

Written by admin on June 9th, 2009 with no comments.
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