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A new survey by Putnam Investments conducted earlier this month found that 67% of defined contribution (DC) participants, 54% of Boomers, and 37% of retirees said they have a gap between what they have saved and what they need. The survey results were announced at a Retirement Income Summit in New York City, hosted by Putnam. However, Americans have a relatively high level of confidence in their knowledge of saving for retirement: Fewer than one-quarter of respondents (23%) classified themselves as “highly knowledgeable,” while 49% say they are “moderately experienced.” Only 7% of respondents classified themselves as “novice.”Why do Americans say they have a gap? About half of participants place blame on market collapse of 2008. Other reasons cited were: saving too little (29%), a drop in the value of their home (28%), being too cautious in investment choices (27%), and started saving too late (25%). However, somewhat contradictorily, many respondents still had confidence in the markets, the survey noted. Most Americans (60%) said they are reviewing retirement statements more frequently as a result of market volatility. And, despite the market conditions of 2008, 75% of those surveyed said their investment portfolio was not permanently damaged by the market declines, including 87% of retirees and 80% of Boomers. The vast majority of Americans (80%), including 72% of retirees, said they will continue to invest in equities in hopes of long-term gains.Closing the GapHalf of those surveyed said they would look to a financial adviser for help in seeking retirement solutions. Other ways Americans said they planned to close the savings gap include: increasing their savings rate (42%) spending less in retirement (41%) working part-time in retirement (38%) working full-time longer (33%) investing more in stocks (25%).
A new survey by Putnam Investments conducted earlier this month found that 67% of defined contribution (DC) participants, 54% of Boomers, and 37% of retirees said they have a gap between what they have saved and what they need. The survey results were announced at a Retirement Income Summit in New York City, hosted by Putnam. However, Americans have a relatively high level of confidence in their knowledge of saving for retirement: Fewer than one-quarter of respondents (23%) classified themselves as “highly knowledgeable,” while 49% say they are “moderately experienced.” Only 7% of respondents classified themselves as “novice.”Why do Americans say they have a gap? About half of participants place blame on market collapse of 2008. Other reasons cited were: saving too little (29%), a drop in the value of their home (28%), being too cautious in investment choices (27%), and started saving too late (25%).
However, somewhat contradictorily, many respondents still had confidence in the markets, the survey noted. Most Americans (60%) said they are reviewing retirement statements more frequently as a result of market volatility. And, despite the market conditions of 2008, 75% of those surveyed said their investment portfolio was not permanently damaged by the market declines, including 87% of retirees and 80% of Boomers. The vast majority of Americans (80%), including 72% of retirees, said they will continue to invest in equities in hopes of long-term gains.Closing the GapHalf of those surveyed said they would look to a financial adviser for help in seeking retirement solutions. Other ways Americans said they planned to close the savings gap include:
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