According to a Pentegra Retirement Services survey, 32 percent of American workers who would like to retire do not think that they are financially able. A further 19 percent believe that they will have the financial means to retire by 65. An overwhelming 92 percent of respondents agree that some portion of each paycheck should go into a retirement account at an average rate of 14 percent per paycheck. Of working parents with dependent children under the age of 18, 21 percent said they have yet to plan for retirement compared to 12 percent for workers without children.
Females were more likely to be uncertain as to when they could feasibly retire compared to males at 21 percent and 13 percent, respectively. Additionally, younger workers expect to retire sooner than their elders with workers aged 18 to 34 expecting to retire at an average age of 62. Of workers aged 35 to 54, the average age of retirement was found to be 65 while respondents over the age of 55 expected to retire at an average age of 67.
“For so many Americans planning for retirement seems too enormous to tackle, and it feels like it is already too late,” said Rich Rausser, senior VP of client services at Pentegra. “But this is not so. Start with 1 percent, 2 percent, 3 percent of salary. Commit to a plan of auto-escalation, each year increasing to your retirement plan by 1 percent. With salary increases and the tax break associated with employee deferrals, it should be fairly painless. And the numbers will budge. It is never too late.”