Despite two decades of advice from the retirement industry about how to accumulate a magic number in retirement savings, many working Americans will never reach that goal, according to Pentegra Retirement Services.
This means the industry must shift focus to educating workers about how to maximize what they will manage to save.
A new poll released Tuesday by Pentegra Retirement Services, a multi-employer plan provider, shows how important educating workers is.
Fifty-six percent of survey participants with retirement savings had no distribution plan for how they would access and stretch their money after retirement, and 20 percent had not given this any thought at all.
Harris Poll conducted a 28-question online survey in mid-April of 2,095 adults ages 18 and older, among whom 1,063 were currently working and not already retired.
Working Americans in the survey planned to retire on average at age 66, and one in five did not plan to retire at all.
Among those who said they would take Social Security benefits, they assumed they would start receiving these on average at age 67.
On average, respondents who planned to retire thought they would need $3,200 per month to live on after they stopped working, and a fifth thought they would need $5,000 or more.