Many Americans say they are concerned about their retirement but have done little about planning for the future, a new study by the Society of Actuaries finds.
The survey report from SOA, Schaumburg, Ill, compares preretirees’ and retirees’ answers in 2009 to those in a previous survey it conducted in 2007.
According to pre-retirees (older workers still in the workforce), 31% said they will be financially unable to retire, and 23% will choose to continue working.
Both pre-retirees and retirees say they plan to prepare for retirement risks, but little had changed between 2007 and 2009 in how they are addressing the gaps in strategies, such as concerns with protecting inflation from outpacing savings or the risk of outliving their assets, SOA found.
The fifth bi-annual SOA report, “Risks and Process of Retirement,” notes that the proportion of individuals planning to save money and work as much as possible is statistically unchanged compared to before the economic downturn. Inflation still reigns as the main concern, surpassing healthcare risks, for both pre-retirees and retirees.
For pre-retirees, the findings from 2009 mirrored those in 2007. This includes:
–In terms of strategies to manage risk, a little more than half of pre-retirees said they already saved as much as they could.
–Less than one-quarter of pre-retirees said they do not plan to completely pay off their mortgage.
–55% of pre-retirees in 2009 invested a portion of their money in stocks or stock mutual funds, compared to 54% in 2007.
–28% of pre-retirees planned to retire from their primary occupation at age 65.