Benefits

Employees Need More Retirement Readiness Action

By Kevin McGuinness editors@plansponsor.com | January 03, 2014
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January 3, 2014 (PLANSPONSOR.com) – While many employees say they are ready for retirement, more need to take active steps towards this preparation, according to a report from Ameriprise Financial.

The report, “2013 New Retirement Mindscape City Pulse Index,” says the percentage of Americans who report taking at least some action to prepare for retirement rose slightly to 72% in 2013. However, say the authors, that number is still lower than in previous years.

More than half (51%) report contributing to a 401(k) or other retirement plan—a jump from last year (47%), but still fewer than those who said they were saving into this kind of plan two or three years ago. Fewer than half (49%) say their retirement account balances have recovered from the market downturn in 2008-2009.

Yet, more than ever, respondents say they feel on track, with one in five (19%) saying they feel very prepared financially for retirement or the remainder of retirement and 28% indicating they feel very confident they’ll reach their retirement goals or that the remainder of their retirement will work out as planned.

What employees need to do, the authors say, is to go from mere concern about retirement to taking active steps to establishing and achieving retirement savings goals. The report findings show those who take the initiative to save more, create a plan and work with a financial professional are more likely to feel as if they are on track to meeting their retirement goals.