Getting older may not be easy, but taking a back seat with your retirement plan could lead to a destiny that is more glum than golden. A new survey from Capital One ShareBuilder reveals that while a majority (54 percent) of Americans plan to retire by age 65, many (36 percent) are not actively contributing to a retirement plan, and more than a quarter (26 percent) are unsure how much they need to save. The survey of American pre-retirees found that while confidence in the ability to save for retirement has improved (with 33 percent claiming to be more confident than they were a year ago), nearly one in four (23 percent) are concerned they may never save enough to retire.
“Now more than ever, it is important for Americans to take their retirement plans into their own hands to ensure they have an adequate nest egg,” said Dan Greenshields, president of Capital One ShareBuilder, Inc. “While planning for a time that many see as a distant future can be a daunting task, people need to assess where they want and expect to be financially when they retire and take advantage of the various tools and resources available to plan for their financial future.”
Retirement Timing and Lifestyle: When and how do Americans plan to retire?
- More than half (54 percent) of Americans plan to retire by age 65, while 23 percent say they don’t plan to ever fully retire.
- One in four (25 percent) Americans plan to work part-time during their retirement, and that percentage increases closer to retirement age, with 40 percent of Americans age 55-64 saying they’ll work part-time.
- A third (33 percent) of Americans plan to maintain their current lifestyle, while 17 percent plan to make sacrifices and 11 percent plan to improve their lifestyle; 38 percent said they are unsure of what lifestyle they plan to lead.
Roadblocks to Retirement Savings: What’s keeping Americans from saving?
- Paying for college tuition (20 percent), job loss (10 percent) and daily household bills (14 percent) are the top roadblocks for retirement savings, according to respondents.
- Only just over one third (37 percent) of Americans say nothing has impeded their ability to save for retirement.
“At any point in life, events can come up where even the best laid financial plans can be derailed,” Greenshields said. “Having an adequate emergency or rainy day fund will help ease the financial burden of unexpected costs – and help keep you on track for retirement.”
The ING DIRECT Orange Savings Account, which can be directly linked to your ShareBuilder account, boasts features including automatic savings functionality and a My Savings Goals tool designed to help build a financial cushion, so you won’t need to dip into or cease contributing to your retirement savings.
Facing Retirement with an Arsenal of Tools:
One thing is for certain – money doesn’t grow on trees. While forty percent of older Americans plan to work part time in retirement, the reality of retirement requires a substantial and realistic nest egg. In preparing for the years ahead, experts agree steps need to be taken for the 26 percent of Americans who are not sure or do not have a retirement plan.
ShareBuilder by Capital One offers solutions that can help investors get their retirement plan on track:
- Twenty-two percent of Americans between the ages of 55 and 64 report not knowing how much they will need to retire. RetireMyWay can help you create a personal and customizable map of the retirement they are seeking and how to get there financially.
- ShareBuilder’s Portfolio Builder is a simple, low-cost tool to help you build a diversified portfolio that aligns with your risk tolerance and work toward your long-term goals.
- ShareBuilder offers a no-fee IRA1, which is a great low-cost option to either get started or roll over an old 401K or IRA to.
The national phone survey was conducted within the United States by TNS on behalf of Capital One ShareBuilder from September 26 through 30, 2012 among 1,000 adults age 18+. No estimates of theoretical sampling error can be calculated; a full methodology is available.
About ShareBuilder by Capital One
Capital One ShareBuilder, Inc., is a leading online brokerage for investors who have long-term financial goals and want to say goodbye to investing complexity. Whether you’re a seasoned investor or just getting started, ShareBuilder by Capital One has what Americans need to help secure their financial future without sacrificing their lives to the stock market. No minimum balance required when you open an account and pay low commissions when investing. Trade when you want, any amount you want, and what you want — stocks, exchange-traded funds, mutual funds, options and retirement solutions.
1 For complete information, see pricing and rates.
Diversification does not guarantee a profit or protect against market losses.
Securities products are offered by Capital One ShareBuilder, Inc., a registered broker-dealer and member FINRA/SIPC. Capital One ShareBuilder, Inc. is a subsidiary of Capital One, N.A. Follow us on Twitter and Facebook.
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