Press Releases

Release Date: June 18, 2007
Contact:
Jeannie Bunton, (202) 216-2067, jbunton@sifma.org

Melissa Buden, (917) 456-2360, mbuden@sifma.org

Nearly One in Three Adults Is Apprehensive, Panicked or Clueless about Funding Retirement

SIFMA Urges Retirement Savings, Investing and Planning

WASHINGTON, D.C., June 18, 2007 – Nearly a third of American adults describe themselves as either “apprehensive,” “panicked” or “clueless” about their retirement preparedness, according to the findings of a recent survey conducted on behalf of the Securities Industry and Financial Markets Association (SIFMA).  Further, a quarter of those on the verge of retirement (ages 55-64) acknowledge they have not done enough to prepare.

“The first step is stop panicking and start planning,” said Marc Lackritz, president and CEO of SIFMA.  “As the survey results show, talking to a financial professional can jumpstart a person’s confidence about retirement readiness.” 

View retirement survey here

The survey also found:

Entering the “Apprehensive” Years: 45-54.  As retirement approaches, but is still some distance away, reality begins to sink in and Americans become increasingly apprehensive.  Discomfort about the prospect of retirement is higher for this age group than it is for those younger or older – with 38% of Americans in this age cohort expressing some level of apprehension or related concern about retirement.  Unfortunately, for many of them, that apprehension is not likely to decline as they get closer to retirement.  Among those 55-64, thirty percent still describe their emotional state regarding their financial preparation for retirement as well short of comfortable. 

Professional advice makes a difference.  Comparing those who believe they have done everything they could to prepare financially for retirement to those who have not, there is little difference in participation in 401(k)s, and they are equally likely to have used a retirement calculator. Additionally, those who say they have done everything are substantially more likely to have consulted a financial professional (52% vs 32%).  Respondents who have consulted a financial professional are much more likely to be comfortable/confident about retirement than those who have not (78% vs 58%).

It’s not just about the money.  For a very substantial portion of Americans, even many who are near retirement age, the problem is not as simple as “they aren’t saving enough.”  Nearly 30% of respondents are truly focused on finding the money that could potentially be saved.  Another third feels they may have the money, but they don’t know how to manage it.  The last third (34%) continue to struggle with the challenges of getting started, of focusing on saving, or of finding the right kinds of help. 

Americans are tuning in to the changes in retirement.  Most believe they have done everything they can to prepare financially for it, and yet they still demonstrate and acknowledge a shortfall.  One-third know they have not yet done what they can – even a quarter of those who are literally on the verge of their retirement years.

Trends among the young tech-savvy population to take interest in their retirement planning are encouraging.  Those 18-34 are much more likely to have downloaded iTunes (37%) but are equally as likely to have either used Tivo (23%) or voted for an American Idol contestant (24%) as to have used a retirement calculator (22%). 

“It’s encouraging to see younger generations taking time to learn about retirement planning,” noted Lackritz. “They will need more retirement savings than their parents do.  By saving early and saving often – they will have a huge advantage on a sound retirement plan.”

Lackritz adds, “Perhaps these younger generations will prove to us older folks they are not American Idles.”

SIFMA has several useful Web sites that are excellent resources for those looking for more information on savings and investing, including www.pathtoinvesting.com, www.investinginbonds.com and www.tomorrowsmoney.org.  Additionally, SIFMA’s new public education retirement Web site, www.retiresmarts.com, is a valuable resource on data, trends and statistical information for the retirement climate across the United States.

The telephone poll of 1,000 nationally representative respondents was conducted from May 29-31, 2007, by Artemis Strategy Group (using the IPSOS U.S. Express Telephone Omnibus) and commissioned by the Securities Industry and Financial Markets Association (SIFMA).  The data are weighted to give appropriate representation on various demographic factors, including: age, income, the four national census regions and gender.

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The Securities Industry and Financial Markets Association brings together the shared interests of more than 650 securities firms, banks and asset managers. SIFMA's mission is to promote policies and practices that work to expand and perfect markets, foster the development of new products and services and create efficiencies for member firms, while preserving and enhancing the public's trust and confidence in the markets and the industry. SIFMA works to represent its members’ interests locally and globally. It has offices in New York, Washington D.C., and London and its associated firm, the Asia Securities Industry and Financial Markets Association, is based in Hong Kong.