CHICAGO, IL - Nearly two in three, or 63 percent of middle-income Americans, are unsure that they’ve saved enough to live comfortably in retirement, according to a new study released by the Bankers Life and Casualty Company Center for a Secure Retirement (CSR).
The Middle-Income Retirement Preparedness Study, which focused on middle-income Americans between ages 55 and 75 with incomes between $25,000 and $75,000, found that despite their uncertainty, more than half do not receive professional retirement advice of any kind. Instead, they turn to the Internet (50 percent) and to friends and family (38 percent) for guidance.
The majority of those (84 percent) who don’t work with a professional advisor don’t feel they need one. According to the study, the three primary reasons that kept them from obtaining professional advice were 1) the belief that they could do it on their own, 2) the belief that they lack sufficient assets to work with an advisor, and 3) the belief that professional guidance is too expensive.
While many feel that they can plan for retirement on their own, they fail to do so. CSR’s retirement preparedness study found that 63 percent spend less than one hour per month planning, and 36 percent of those without advisors don’t do any research at all.
“Rising health and long-term care costs, the declining value of investments and an uncertain economic future all highlight the need for retirement plans that protect savings and make money last,” said Scott Perry, president of Bankers Life and Casualty Company, a national life and health insurer. “The value of utilizing the resources available – whether through your own research and analysis or a professional retirement advisor – is apparent when you look at what people face today when planning for retirement.”
According to the CSR’s study, 68 percent of middle-income retirees and pre-retirees who work with a professional advisor feel better prepared for retirement than their peers, and 76 percent say they’re extremely or very satisfied with the experience.
Methodology: The Bankers Life and Casualty Company Center for a Secure Retirement Middle-Income Retirement Preparedness Study was conducted in August of 2010 by the independent research firm The Blackstone Group. The complete report may be viewed at CenterForASecureRetirement.com
About the Center for a Secure Retirement
The Bankers Life and Casualty Company Center for a Secure Retirement is the company’s research and consumer education organization. Its studies and consumer awareness campaigns provide insight and practical advice for how everyday Americans can achieve financial security during retirement. Established in 1879 in Chicago, Bankers Life and Casualty Company focuses on the insurance needs of the retirement market. The nationwide company, a subsidiary of CNO Financial Group, Inc., offers a broad portfolio of life and health insurance retirement product designed especially for seniors.