John Parks, Academy vice president for pension issues, said that the pension-401(k) combination should give workers a sufficient income stream while allowing them to prudently invest in order to accumulate assets.
Parks’ comments come as a survey sponsored by the
Academy and the Society of Actuaries found that Americans
were off base in figuring their own life expectancy and
their need for possible nursing-home care. The survey
is entitled Is America Unprepared for Retirement?
The survey findings show that:
- 67% of retired women and 55% of retired men underestimated how long the average 65-year-old man would live, while 54% of pre-retiree women and 46% of pre-retiree men making the same miscalculation,
- more than 50% of pre-retirees are either “very” or “somewhat” concerned about not having enough money to pay for extended nursing care at home or in a nursing home, or to pay for good health care,
- only a third of retirees have pondered how to be financially ready for retirement – particularly about the possibility of needing long-term aid at home due to poor health or frailty, or the possibility of needing an extended nursing home stay,
- both retirees and pre-retirees are pessimistic on the economy, with 63% of retirees and 60% of pre-retirees believing that it is “very” or “somewhat” likely that inflation will average more than 5% a year for the next ten years,
- for pre-retirees, finances and health are the leading factors in deciding when to retire, with the availability of employee health insurance emerging as most important for 79% of pre-retirees
The survey was conducted in August 2001 by telephone among 600 retirees and pre-retirees.
See the full survey.