Administration

Savers Worry They Will Outlive Retirement Nest Egg

By Jay Polansky editors@plansponsor.com | July 25, 2012
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July 25, 2012 (PLANSPONSOR.com) - Only about one in six people (16%) worldwide is confident their current level of savings is sufficient to cover their financial needs after retirement, a survey found.

Accenture found more than half of respondents do not know how to prepare for retirement, while nearly half turn to friends and family for retirement advice before life insurers and banks.

More than four out of five people (82%) are concerned about their financial situation after retirement and almost nine in 10 (89%) say it is important to start saving now.

The survey also reveals that more than half (53%) of the respondents believe they lack the necessary information to prepare for retirement and the financial capacity (57%) to invest in private pension.

While a large majority (93%) recognize that they will need to rely partly or wholly on their personal savings to cover their post-retirement financial needs, more than two-thirds (67%) do not know how much they need to save to guarantee their standard of living in retirement.

Less than one-third (29%) have private investments aimed specifically at addressing their retirement needs (in addition to any employer or public pension funds from which they may benefit).

"The strong common global concerns about post-retirement financial security are alarming," said Mark A. Halverson, a managing director in Accenture's Financial Services group. "In the current economic environment, people are increasingly worried about their financial future. They are willing to save money but have limited financial knowledge and limited saving abilities to actually do so. These findings reveal a major unmet demand for retirement planning that industry professionals can help address.”