About 65% of Americans simply don’t know how much money they’ll have to live on in their retirement years. Planning is essential to a successful retirement, and according to a new survey by TIAA detailed here by Investor’s Business Daily, nearly two-thirds of Americans aren’t doing even the basics.
When it comes to confidence in their retirement planning, nearly six out of 10 American adults can sleep easily at night. Those 58% of Americans feel good about how much they’ve saved, according to a new survey by financial services firm TIAA. They believe their savings are on track to generate enough income for them to live on in their golden years.
But a lot are kidding themselves. Many have not actually taken basic steps necessary to assure that their confidence is justified.
- Only 46% know how much they’ve saved for retirement. “That makes it impossible for a person to know for sure if he’s saving enough,” said Neil Krishnaswamy, a financial planner with Exencial Wealth Advisors in Frisco, Texas, which was not involved in the TIAA survey.
- Only 35% have calculated how much income they’ll have each month in retirement. That means that 65% haven’t got a clue about how much money they’ll have to live on.
- 41% are saving only 10% or less of their income for retirement. That’s below the level of savings that most experts recommend.
- 28% of those are who are not retired are not saving anything for retirement.
“Those are oversights in anyone’s retirement planning,” Krishnaswamy said.
This video addresses retirement challenges in the UK, but many of the issues are similar to those in the U.S.