According to a recent LIMRA report, Americans are terribly ill prepared for retirement. A shocking 50{d044ab8acbff62f209a116f8142e303cb886f535b0fcf58cb82cde7cb327d3c9} of baby boomers have under $100,000 in retirement savings, and over 1/3 have less than $25,000.
This data is even more alarming in an age where fewer employees are offering pensions, health care costs are on the rise, and life spans continue to increase (the one positive factor in this list). The LIMRA report went on to note four important facts to consider about retirement security.
1. People are retiring earlier than planned, most often due to health reasons. This one is a double whammy. Not only do many individuals enter retirement with a few less years of savings under their belts, they’re often doing so carrying the huge burden of additional medical debt.
2. Annuities increase confidence and satisfaction. An overwhelming majority of those who own these retirement tools report they feel ready for retirement and agree the products are well suited for their financial needs.
3. Many want financial advice, but only if it’s free. While 80{d044ab8acbff62f209a116f8142e303cb886f535b0fcf58cb82cde7cb327d3c9} of Americans feel their advisors help them achieve more than they could on their own, only 20{d044ab8acbff62f209a116f8142e303cb886f535b0fcf58cb82cde7cb327d3c9} would be willing to pay over $100 for their services.
4. Employers are wrong about workers’ feelings regarding guaranteed income options. Even though 80{d044ab8acbff62f209a116f8142e303cb886f535b0fcf58cb82cde7cb327d3c9} wish their defined contribution plan had this option, almost no one does. In fact, less than 1{d044ab8acbff62f209a116f8142e303cb886f535b0fcf58cb82cde7cb327d3c9} of the population has a guaranteed income option.
To read more about the study’s findings, you can see this article on LifeHealthPro.