How much money will you need to save in order to fund retirement? An alarming 61 percent of Americans recently surveyed by Bankrate said that they have no idea what needs to be set aside to ensure old-age financial security, and many of those able to provide an estimate were still too conservative with their savings targets. Such responses highlight the need for better planning, something which has repeatedly been shown to help achieve both near- and long-term financial well-being. For example, an earlier poll conducted by Lincoln Financial Group found that among surveyed Americans who believe they are currently on the right track to achieve financial wellness, nearly all (98 percent) said that they have a “forward-looking view and are planning toward that vision,” and 71 percent reported that they “have created a financial plan that they are following.”
Similarly, a TIAA study found that three out of every four surveyed retirees who started their old-age financial planning before their 30th birthday reported that they are “very satisfied” with the retirement lifestyle they have been able to achieve. Only 60 percent of respondents who waited until after the age of 50 to start their old-age financial preparations were able to report being equally content with their current retirement lifestyle. Surveyed seniors who started early with their old-age financial planning were also much more likely to say that they retired sooner than anticipated, especially among those who were able to stop working before age 60. That should be an important lesson for the 92 percent of adults in the Lincoln Financial Group poll who said that they “do not want to have to work in retirement.” Consulting with a financial professional also seems highly beneficial because more than half (53 percent) of surveyed retirees who utilized an advisor said they are satisfied with their level of pre-retirement planning, compared to only 32 percent of those who had not worked with a professional.
Sources: Bankrate, Lincoln Financial Group, TIAA
Post author: Charles Couch