According to ING’s Retirement Revealed survey, despite this fact, 75% of respondents that are employed full-time and have an annual income of $40,000 or more, are contributing to their workplace retirement plan.
The survey also found 71% of respondents say they do not have a formal investment plan in place to help them reach their financial goals.
Other key findings from the study include:
• Three-quarters of respondents currently contribute to an employer-sponsored plan, with an average of $69,000 saved in the plan;
• Most people with employer-sponsored plans contribute a set amount per paycheck, either a percentage (average: 8.4%) of a dollar amount (average $220).
• Seventy-two percent are receiving the full employer match;
• Fifty-eight percent of respondents are currently save money outside of an employer-sponsored retirement plan, with average savings of $46,000;
• Only 43% of respondents have calculated how much money they will need to maintain their lifestyle in retirement;
• Only 36% of respondents spend a lot or some time thinking about retirement;
• Forty-seven percent of respondents rely on their own research, the Internet or other media for financial advice;
• Twenty-four percent say they rely on financial advisers;
• Twenty-nine percent have a formal investment plan; and
• Thirty-two percent have six months of emergency cash reserves.
“Most consumers today face a number of competing financial priorities. But one thing they should not lose sight of is the importance of properly preparing for their retirement,” said Maliz Beams, CEO of ING U.S. Retirement. “The good news is that more people are becoming aware of what it takes to reach their goals.”
The Retirement Revealed study was conducted via an online survey of 4,050 adult respondents between the ages of 25 and 69 by ORC International.