Fewer respondents are saving for retirement than in prior years, according to Franklin Templeton’s 2016 Retirement Income Strategies and Expectations (RISE) survey.
According to the survey of 2,019 adults age 18 and older, 41% indicated that they are not yet saving, compared with 35% in 2014.
And, while savings are down, the survey finds concerns are up.
Stress when thinking about retirement savings and investments saw a slight uptick year over year, with 70% of all respondents reporting stress this year versus 67% in 2015, according to the survey.
As Franklin Templeton sees it, there’s a disconnect between the concerns people have about retirement and taking action to address those concerns.
Over the last three years, Franklin Templeton has found that the percentage of those not saving for retirement is increasing and so is the percentage of those concerned about outliving their assets or having to make major sacrifices to their retirement strategy.
“While there’s no question that individuals understand the importance of planning for retirement, they may be overwhelmed with preconceived and often unrealistic expectations that can prevent them from taking any action, as they don’t know where to start,” said Yaqub Ahmed, head of defined contribution-U.S. for Franklin Templeton, in a statement.
As the survey also finds, anxiety and stress can have an adverse effect on the retirement planning process.
Of the survey respondents who reported experiencing significant stress when thinking about their retirement savings, 65% indicated that they did not have an understanding of how much they should expect to withdraw or spend on an annual basis during retirement. Similarly, according to the survey, 60% of those who were concerned about managing retirement income do not know how they will pay their medical expenses during retirement.
This is where the survey shows a formal retirement plan or professional advice has some serious benefits.