A news release by the Financial Services Forum said that the survey, presented at the National Summit on Retirement Savings in Washington, DC this week, also found that nearly a third of Americans saved nothing for retirement last year. Some 25% of respondents who were in their peak earning years (50 to 65 years old) had not saved a nickel in the last year.
“The results of this survey show us that, for a comfortable retirement, Americans are going to need to become far more serious about their retirement savings,” Forum CEO Don Evans said in the news release.
Among those who are saving, the poll indicated that they’re putting aside far too little. Nearly three out of five younger Americans (35-49) saved less than $10,000 for retirement last year – too little to sustain a comfortable middle-class lifestyle in retirement.
Younger workers plan to rely far less on Social Security and far more on personal savings through tax-advantaged savings vehicles such as 401Ks and IRAs. According to the release, the survey found that:
- more than half of Americans under 50 think Social Security will provide only a minor source of income, compared to 60% of Americans age 65 or older who rate Social Security a major source of retirement income.
- 65% of the youngest Americans (18-34), see 401Ks and IRA as providing a major source of income in retirement.
The nationwide poll of 1,000 adults was conducted by RT Strategies February 23-26, 2006.
Evans’ remarks to the Washington conference are here .