Hot off the presses!
New research released by the Certified Financial Board of Standards, Inc. (CFP Board), in collaboration with global research firm Morning Consult, confirms that Americans are not prepared for retirement.
I don’t know about the rest of you, but honestly? That’s not really a shocker.
The CFP Board/Morning Consult Survey was conducted as part of a new effort by the CFP Board to identify challenges to the current retirement system and develop recommendations for policymakers to improve it.
And their findings yielded information that many of us won’t find very surprising.
And their findings yielded information that many of us won’t find very surprising.
According to the CFP News Release: despite one of the strongest economies in decades, only 1 in 4 Americans feels financially prepared for retirement. Not only that, the survey revealed that Americans need more reassurance about ways to save for their post-working years.
The news release broke this down even further by explaining that nearly 8 in 10 (or 79%) Americans do not feel reassured that they have the best retirement savings strategies available to them. This may be a result of consumers not knowing what options exist, as 3 in 10 do not know if their current employer offers a retirement savings plan. And 1 in 4 say saving for retirement is too complicated.
“With so many Americans getting a late start on retirement savings, the odds are high that they will be unprepared to maintain the lifestyle they're accustomed to living,” said Kevin Keller, Chief Executive Officer of CFP Board. “Americans know how important it is to save for retirement, but the truth is more than a third of those surveyed are overwhelmed by the process and, critically, many do not understand what products and resources are available to them.”
Some information I found particularly interesting was the news release’s statement that 60% of Americans who report receiving retirement advice from a financial professional say they have “definitely” benefitted from this service. Additionally, more than half (54%) of Americans believe they would benefit from receiving retirement savings advice from a financial professional, if they decided to use one in the future.
The news release goes on to explain how nearly half of Americans (49%) think adults should start saving for retirement in their 20s, but few follow their own advice. More than 1 in 4 (26%) delay saving for retirement until their 30s, while another 15% wait until their 40s. Most alarming, approximately 1 in 10 Americans (8%) wait to start saving for retirement until after 50 years of age.
“The nuances to retirement savings vary based on circumstantial factors, such as what you can afford to save and what savings programs are available to you,” Keller said. “This survey shows there is still a lack clarity about what options are available to retirement savers, including ethical and competent financial advice. It's time for Congress, the Administration and other stakeholders, including CFP Board, to come together to develop new solutions to meet the retirement crisis that we will inevitably face.”
Some information I found particularly interesting was the news release’s statement that 60% of Americans who report receiving retirement advice from a financial professional say they have “definitely” benefitted from this service. Additionally, more than half (54%) of Americans believe they would benefit from receiving retirement savings advice from a financial professional, if they decided to use one in the future.
The news release goes on to explain how nearly half of Americans (49%) think adults should start saving for retirement in their 20s, but few follow their own advice. More than 1 in 4 (26%) delay saving for retirement until their 30s, while another 15% wait until their 40s. Most alarming, approximately 1 in 10 Americans (8%) wait to start saving for retirement until after 50 years of age.
“The nuances to retirement savings vary based on circumstantial factors, such as what you can afford to save and what savings programs are available to you,” Keller said. “This survey shows there is still a lack clarity about what options are available to retirement savers, including ethical and competent financial advice. It's time for Congress, the Administration and other stakeholders, including CFP Board, to come together to develop new solutions to meet the retirement crisis that we will inevitably face.”
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