Nearly three quarters of Americans (72%) aged 25 to 69 expect to work during their retirement years, according to Wells Fargo. They are slightly more likely to say they will work because they need the money to make ends meet and maintain their lifestyle (39%) than simply because they want to (33%).
Only a third (33%) have a written retirement plan. Some 37% have no idea how much they will need for retirement, yet 58% are confident they’ll be able to retire comfortably. Those who have a plan think they will need an average of $300,000 in savings, though Americans have only saved a median of $20,000. Those nearing retirement age, 50-59, only have a median of $29,000 saved, yet most (56%) think they will have enough money to fund their retirement.
Two thirds (65%) believe they could save more if they got more guidance or advice. Most (55%) say other financial priorities consume their budget so they do not have any money to put away for retirement. Nearly two thirds (62%) have not changed their retirement savings rate during the recession, whereas 16% have increased their savings rate.
20-Somethings
• 71% feel on track for retirement;
• 31% are confident about the stock market as a source of investment gains; and
• 40% would invest in a certificate of deposit if given $5,000 to invest for retirement.
30-Somethings
• 33% say their retirement plans will be affected by family needs; and
• Anticipate the highest cost of health care in retirement.
40-Somethings
• 48% believe they will be able to save the amount they need for the retirement lifestyle they want, the fewest of any age group;
• 47% believe inflation will affect their ability to retire; and
• 79% are trying to reduce debt, the most of any age group.
50- and 60-Somethings
• 55% of those in their 50s and 59% of those in their 60s have a pension that will serve as a resource in retirement; and
• Most likely to be looking forward to retirement. [Finance]
Source: “Retirement Survey,” Wells Fargo, Amy Hyland Jones, 1525 W. WT Blvd., Charlotte, NC 28262; 704-383-4995; www.wellsfargo.com. Price: Available online at no charge.
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