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The ING U.S. study(1) — Retirement Revealed — also showed that while 75 percent of respondents aged 25 to 69 who are employed full-time with an annual income of
"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
Alongside the study findings, ING U.S. has identified several simple but important savings resolutions that can keep Americans on track to meet future financial goals.
Resolution #1: Make Saving a Personal Responsibility
Individuals are responsible for retirement more than ever before. The responsibility of planning and saving involves not only building up a sufficient nest egg, but also making sure those savings last a lifetime while protecting against unexpected financial pitfalls. It also means developing a comprehensive approach—creating a financial plan, getting advice from a trusted professional and utilizing a variety of savings strategies both in and out of the workplace.
Resolution #2: Enroll in a Workplace Plan
Participating in a workplace retirement plan is often the cornerstone of most successful retirement programs and one of the first and best places to start saving. These plans offer a number of benefits, including the convenience of having investments directly deducted from a paycheck; tax-deferred growth on savings; company matching, when available and choice and control over how to invest. According to
Resolution #3: Gain Greater Control Over Assets
Take advantage of multiple savings opportunities when possible. According to the study, more than half of the respondents (58 percent) are saving outside a workplace retirement plan in such places as an individual retirement account (IRA), Roth IRA, traditional bank account, CD or brokerage account, with an average of
Resolution #4: Calculate Retirement Needs and Evaluate Savings Rates
After choosing to participate in a workplace plan or opening up an IRA, the most important decision an investor makes is setting their contribution level. However, many people lack a clear understanding of contribution rates and how even small changes can produce significant results over time, impacting whether or not retirement goals are reached. Only 43 percent of those surveyed calculated how much money they will need in retirement to continue their current lifestyle. Understanding the projected savings that different contribution levels can produce, and considering things like tax impact, compounding and the effects of employer matches can make a huge difference in retirement preparation.
Resolution #5: Get Education, Information and Professional Guidance
Knowledge is power, and it can be critical for achieving a positive outcome in retirement. Support, guidance and information can come in many forms—in person, over the phone, through "self-help" online tools or through an employer. According to those surveyed, almost half (47 percent) expect their employer to do more to educate them about retirement options. Still, others would like additional guidance beyond what their employer might offer. In fact, those in the survey valued face-to-face communication with a financial professional as the most vital for getting information about their retirement plan and other employee benefits. Yet only 28 percent are currently working with a financial professional, which indicates that this type of help may be something to consider for the New Year.
About ING U.S.
ING U.S. includes the U.S insurance, retirement and asset management businesses of Dutch-based
(1) Findings are from an online survey conducted during the period of
SOURCE ING U.S.