According to a new survey from Capital One ShareBuilder, a majority (54 percent) of Americans plan to retire by age 65, yet 36 percent aren’t actively contributing to a retirement plan and 26 percent don’t know how much they need to save. The survey of around 1,000 Americans (age 18+) revealed that although confidence in the ability to save for retirement has improved—33 percent claimed to be more confident than they were a year ago—nearly one in four (23 percent) are concerned they may never save enough to retire.
“Now more than ever, it is important for Americans to take their retirement plans into their own hands to ensure they have an adequate nest egg,” said Dan Greenshields, president of Capital One ShareBuilder, Inc. “While planning for a time that many see as a distant future can be a daunting task, people need to assess where they want and expect to be financially when they retire and take advantage of the various tools and resources available to plan for their financial future.”
The survey’s findings showed that:
- While more than half of Americans plan to retire by age 65, 23 percent said they don’t plan to ever fully retire
- 25 percent of Americans plan to work part-time during their retirement, with percentage increasing closer to retirement age
- One third (33 percent) of Americans plan to maintain their current lifestyle; 17 percent plan to make sacrifices; 11 percent plan to improve their lifestyle; and 38 percent said they are unsure of what lifestyle they plan to lead
Respondents reported that that top roadblocks to retirement savings are paying for college tuition (20 percent), job loss (10 percent) and daily household bills (14 percent). Only 37 percent of Americans said nothing has impeded their ability to save for retirement.
“At any point in life, events can come up where even the best laid financial plans can be derailed,” said Greenshields. “Having an adequate emergency or rainy day fund will help ease the financial burden of unexpected costs – and help keep you on track for retirement.”