The June 1, 2015 Wall Street Journal (pg. R5) quoted
information from the 2015 Retirement Confidence Survey by the Employee Benefit
Research Institute. The survey, released in April, 2015, provided some
interesting information about how Americans felt about retirement. Some items
discussed include the following (based on responses from individuals age 55 or
older):
Planning
The percentages below show how many of the individuals
polled:
- Have a written or documented financial plan- 21%
- Consulted a professional financial advisor- 43%
- Estimated health care costs in retirement- 36%
- Estimated their income needs in retirement- 58%
- Estimated how much they will need in savings as they begin retirement- 58%
Retirement Savings
The retirement savings issue warrants further discussion.
More than half of the survey respondents believe they will need at least
$250,000 in savings when they retire: only 25% have attained that level of
savings. As a result, 67% expect to work in retirement. Only 23% of current
retirees are working for pay.
Current savings levels prior to retirement showed some
concerning results:
Current Savings Percent
Less than $1000 21
$1000-$9999 11
$10,000-$24,999 11
$25,000-$49,999 9
$50,000-$99,999 9
Current Savings Percent
$100,000-$249,999 14
$250,000 or more 25
Note: These results are based on an Employee Benefit
Research Institute telephone survey of 295 workers age 55 or older conducted in
Jan-Feb 2015. The values exclude the value of a primary residence and assets in
a pension (defined benefit) plan.
How
does your retirement planning compare? We, at Paragon Financial Advisors,
assist our clients in answering that question. Paragon Financial Advisors is a fee-only registered investment advisory company located in College Station, Texas. We offer financial planning and investment management.
