Plan Participants Share Fears About a Less-Than-Comfortable Life
CHICAGO, IL–(Marketwired – Jun 4, 2014) – A defined contribution retirement plan is a recommended starting point for investors to prepare for the financial needs of the future, but it’s hardly a cure-all for most Americans approaching retirement. In fact, most Americans do not feel they’ll retire comfortably. Spectrem’s Financial Attitudes and Concerns of Retirement Plan Participants delves into the attitudes of plan participants and details their concerns about what the future holds for them financially, and looks at their perceptions of financial issues that plague America nationally.
- Even with a defined contribution retirement account, only 47 percent expect to live comfortably during retirement.
- The majority (64 percent) are concerned that they might not be able to retire when they want to.
- Almost half (46 percent) admit they are not very knowledgeable about finances and investing.
- Sixty percent say their financial situation has improved in the last year and 59 percent said they expect an improvement over the next 12 months.
More than three-fourths see prolonged economic downturn, political environment, and tax increases as the top national concerns in retirement planning.
“Even though the recent stock market boom has increased the balances of plan participant accounts, concern over paying for retirement remains high,” says George H. Walper Jr., president of Spectrem Group. “Many Baby Boomers are just beginning to realize they may not have saved what they need to ensure a steady stream of income for their retirement. This provides an opportunity for financial and advisory firms to step in and serve new investors.”
About Spectrem Group
Spectrem Group (www.spectrem.com) is the leading research provider in the wealth management marketplace. Each month, Spectrem Group surveys more than 1500 investors with $100,000 to $25 million of net worth regarding their investment attitudes and behaviors.
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