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Data & Research March 6, 2015
Even Leading Savers Lack Confidence
Seven in 10 U.S. investors with more than $100,000 in accumulated assets said they are not confident or are unsure they will have enough saved to fund a successful retirement.
Reported by John Manganaro
A strong majority of retirement savers surveyed by U.S. Bancorp Investments, an investment services affiliate of U.S. Bank, are uncertain whether they will have enough money to live comfortably throughout retirement.
A widespread lack of confidence in retirement asset levels isn’t a novel finding, researchers admit, but the striking number of people with more than $100,000 saved who still lack confidence should cause industry practitioners to pause. Even these individuals, who may be well on their way to retirement readiness, often lack a solid understanding of just how much money is needed to fund a comfortable retirement.
Equally critical, researchers note, is that only 6% of respondents with less than $100,000 in investable assets reported being confident they will have enough money to support themselves throughout retirement. Among respondents with more than $100,000, about half (48%) reported moderate confidence that they would have enough money to live comfortably throughout retirement, while 24% of respondents with less than $100,000 expressed moderate confidence.
“Because we can’t predict what lies ahead, holistic retirement planning allows people to prepare for the unknown and navigate through challenges to retiring comfortably with more confidence,” says Bill Benjamin, president and CEO of U.S. Bancorp Investments.
Benjamin says the survey results show educational tools, combined with professional financial advice, can make a significant difference in retirement planning confidence and success. Access to tools and advice provides investors with critical next steps needed to improve their retirement outlook, and are associated with higher confidence and asset levels.
U.S. Bancorp Investments’ retirement preparedness survey is based on a nationally representative sample of 3,406 individuals, which were primarily U.S. Bank customers. The survey was conducted online between October 4 and December 17.
Additional results and research are available through the firm’s recently launched “RealSteps>Retirement” website.