The Aegon Retirement Readiness Survey recently issued a warning:
“[Start saving for retirement] because you could be retired for as long as your entire adult working life!” The Aegon survey was first done in 2012, with the follow up survey just completed in June of this year. Since 2012, the United States has moved to the top of all countries saving for retirement, leap frogging over India and Brazil. What makes this survey stand out as you read the details is the fact that the average person reaching age 65 in the U.S. has less than $60,000 of total assets, including the equity in their home (U.S. Census Report). What that means is that if $60,000 is all the average U.S. citizen has at retirement and we are considered the top country in saving for retirement, other folks throughout the world are in an even bigger heap of trouble!
The survey points out that to become the top country, U.S. employees have significantly increased their sense of responsibility over the last four years. It seems the average employee has increased their own awareness and long-term savings processes since 2008, when the economic melt-down occurred. More people are now using their 401(k) plans to deposit savings
But after hearing this comment about retirement in a recent TV news story, that the “U.S. is still the cleanest shirt in the dirty laundry,” we obviously still have a long way to go before we can take any pride in ourselves. How does that make you feel? You, me, and the rest of our entire U.S. working population are being honored as the cleanest-dirty shirt. Wow, this is horrible!
The survey’s conclusion is that U.S. citizens are the best in the world at preparing for retirement, but we are doing a very poor job of it. If you want help, contact me at firstname.lastname@example.org. And if you are not saving at least 10% of your income for the rest of your life, you will have big troubles coming your way.
Facts taken from the survey:
- More than half of those interviewed said personal savings is a major part of retirement savings.
- Of those interviewed, and classified themselves as fully-retired, 57% say they still work to keep their mind active and alert.
- 37% want to keep working in retirement because they enjoy it.
- 32% of those who work after retirement do so because of their concern of running out of money.
- The average age that a worker wants to retire is age 65, down some from 2012.
- 58% of workers find phased-in-retirement to be very important to them, the ability to slowly work less and less hours as they age. Only one-forth all employers offer this phase-out option in retirement.
- 92% of all retired workers are dependent upon government assistance.