What the smart man does in the beginning the foolish man does in the end. ... Your retirement is under your control. How much you save and how long you save will be the biggest factors determining your retirement success.
Salt Lake City, UT (PRWEB) April 16, 2012
New research has found that U.S. employers have lost confidence that employees will have sufficient retirement assets when they leave the workplace. This does not surprise financial planner Derek Overstreet, who said that people often neglect taking time to create a long-term strategy for retirement that factors in all of their needs.
Here are some results from a recent survey of more than 500 U.S. employers by human resource consulting firm Aon Hewitt:
- Only 4 percent of employers are very confident their employees will have adequate retirement assets. A dramatic shift from 2011, when the same survey found that 30 percent of employers were very confident with their employees’ retirement assets.
- Moreover, only 10 percent of employers feel very confident employees are taking the accountability needed to ensure retirement success.
- Employers also doubt their employees’ ability to manage income once they do retire, with only 18 percent feeling confident their employees will be able to manage their retirement income.
“Many workplaces don’t provide a full education and the resources needed for employees to make informed retirement decisions. Meeting with a financial adviser to come up with a workable retirement plan is one of the most proactive steps an individual can take to help create a more comfortable retirement,” said Overstreet, president of New Millennium Insurance Services in South Jordan, Utah.
With an estimated 10,000 baby boomers turning 65 every day, many are not fully prepared to retire. The Insured Retirement Institute found that only 36 percent of baby boomers are confident they will have a comfortable retirement. While 64 percent believe they will have to take a post-retirement job as an additional source of income.
A poor economy is among the biggest retirement concerns, with 62 percent of those surveyed reporting that they think their financial situation will be the same or worse in five years.
Many baby boomers expect to depend on Social Security as a major income source. In addition, employer-sponsored contribution plans are being seen as another top retirement income source by 42 percent of those surveyed by the Insured Retirement Institute.
Meanwhile, Aon Hewitt found that 52 percent of employers plan to encourage workers to take more accountability for their retirement planning. While 60 percent say they will focus on helping employees become more educated in the resources available to them through employment.
“Once, workers could count on a steady income stream throughout their retirement years,” said Pamela Hess, director of retirement research for Aon Hewitt. “Now, more people are relying exclusively on their DC (defined contribution) plan for their retirement savings and that regular paycheck has disappeared, leaving many employees struggling to effectively balance retirement expenses. Employers recognize this challenge and are adding features and resources to help workers manage their savings.”
Overstreet warned that the future will arrive whether an individual adequately prepares for it or not.
“What the smart man does in the beginning the foolish man does in the end,” he said. “Your retirement is under your control. How much you save and how long you save will be the biggest factors determining your retirement success.”
About New Millennium
While most financial planners focus on growth, New Millennium specializes in helping clients use current investments to ensure a steady income stream throughout retirement. New Millennium believes in investing with a purpose, not simply diversifying portfolios. New Millennium helps clients define their retirement goals and structure investment in order to accomplish them. Please visit http://nmutah.com/ for more information.