Investors sound pretty optimistic; nearly 80 percent say they're somewhat confident they'll be able to afford their retirement, according to a recent survey. Unfortunately, their advisors don't agree. Only 45 percent of financial advisors surveyed by Harris Interactive agreed that most of their clients had realistic expectations about retirement. Fifty-five percent of advisors say they are working with their clients on new, more realistic retirement goals, and 52 percent are forcing clients to face up to lower expected returns and increased contributions.
"Confidence and optimism are admirable qualities, but when it comes to retirement planning, they should be exercised in moderation and with a sense of perspective," says Brian Gaffney, CEO of Allianz Global Investors Distributors, which commissioned the survey. "Indeed, in the wake of the past year's economic and market upheaval, one of the most valuable services advisors are providing is a sorely needed reality check on clients' retirement goals and planning."