Benefits October 6, 2011

Declining Retirement Confidence Transcends Political Affiliation

October 6, 2011 (PLANSPONSOR.com) - Bill McInturff, a partner at polling firm Public Opinion Strategies, told a group of reporters that it is upsetting and unsettling to see that a lack of confidence in retirement savings has permeated throughout every economic class. 
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McInturff said there are usually large differences in confidence levels depending on economic status. “Normally, if you have a lot of money, you’re not concerned. Now, across the board, everyone is concerned. It’s not like I’ve seen in the past; it speaks to how difficult these past four years have been since the recession started in ‘08.”

McInturff was referring to results from a national survey released this week, conducted by Lake Research Partners and Public Opinion Strategies, and commissioned by Americans for Secure Retirement (ASR), a broad-based coalition of more than 70 organizations committed to raising awareness of policy issues related to retirement security.

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The survey reveals that anxiety about retirement is continuing to grow, with near universal concern about having enough to make ends meet throughout retirement.  

“What we’re seeing is significant, and increasing, concern from Americans of all political stripes about falling short financially during retirement,” said McInturff. “Not only are Americans concerned about their own financial health, but they also express widespread concern over how the continued contentious debate in Washington could further undermine what they are planning for in retirement. Even those who feel we must make dramatic cuts to deal with the debt think Congress needs to identify concrete ways to help Americans deal with further retirement instability.”

The survey reveals pervasive anxiety over how efforts to reduce our national debt may impact retirement security. Regardless of party affiliation, the majority of voters are concerned that cuts to Medicare or Social Security would have too significant an impact on retirement or that, if cuts are made, Congress must look for other ways to help Americans better plan for retirement. A majority of respondents also expressed support for proposals such as tax incentives to help save for retirement.

Key findings from the survey include:

Eighty-eight percent of voters expressed concern about "being able to maintain a comfortable standard of living throughout retirement," with 52% of those individuals indicating they are "very concerned." This is up 15% from just last year.

Concerns about being able to maintain a standard of living in retirement are extremely high across very diverse demographic groups:

•  White (86%)

•  African-American (88%)

•  Hispanic (96%)

•  Those without any investments (93%)

•  Those with over $100,000 in investments (84%)

•  Financial elites (81%)

•  Retired (81%)

•  Not-retired (89%)

A third (31%) of all voters believe that if policymakers are going to cut Medicare or Social Security, they must looks for additional ways to help Americans better prepare for retirement.

Half (50%) of voters believe lawmakers should not cut Medicare or Social Security because it would have too significant an impact on retirement. Interestingly, this concern does not strictly fall along party lines. A plurality of Republicans and Tea Party supporters (34% of self-identified Tea Party supporters, 39% of Republicans) and the majority of Democrats (62%) express this viewpoint.

Eighty-eight percent of voters view tax incentives to help save for retirement as important. This includes 81% of Tea Party supporters, 83% of Republicans, 86% of Independents, and 94% of Democrats.

"Continued economic uncertainty, high unemployment, and instability in the stock market have placed a growing concern on retirement security, and it's an issue that transcends party affiliation," said Celinda Lake, President of Lake Research Partners.  "As all eyes turn toward the 2012 election cycle, it's clear that fears regarding retirement security will play out big not only for Democratic voters, but even the most conservative of Republicans as well."

The poll was conducted by Public Opinion Strategies, in consultation with Lake Research Partners, as part of a national survey of 800 registered voters.  The survey took place from September 10-13, 2011.  More information, including a detailed breakdown of the poll results, can be found at: http://www.paycheckforlife.org/newsroom/wp-content/uploads/2011/10/For-Website.pdf 
Benefits October 6, 2011

Most Canadians Envision Adequate Savings to Choose Their Retirement Date

October 6, 2011 (PLANSPONSOR.com) - Canadians anticipate saving enough to retire at age 63, and most see themselves entering retirement without debt, according to a new CIBC poll. 
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The poll also shows that as Canadians draw closer to retirement, they become less optimistic about reaching their savings goals and see it as more likely they’ll carry at least some debt into retirement.

Findings from the poll include:

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•  On average, Canadians believe they will retire at age 63.

•  When asked why they would ultimately retire, the most popular answer among Canadians was that they will have saved enough money to choose their retirement date (37%).

•  Only 22% of Canadians believe they will carry some debt into retirement,  however past CIBC research shows that among retired Canadians, 54% hold some form of debt.

•  Boomers on the verge of retirement in the 55 to 64 year old age group were less likely to believe they would be able to choose to retire based on their savings (only 21%), and more likely to believe they would carry debt into retirement (31%).

“Our CIBC Poll shows that Canadians set out with a vision of building up their savings and eliminating debt to retire at a time of their choosing, but with each passing year they feel less optimistic about their plans,” said Christina Kramer, Executive Vice-President, Retail Distribution and Channel Strategy, CIBC.

A key finding of the poll is that as Canadians near retirement, their optimism in reaching their savings goals for retirement drops:

For example, 43% of Canadians aged 25-34 feel they will be able to choose to retire based on the savings they will accumulate over their working life. However, for those at the leading edge of the baby boom (aged 55-64) that number is cut in half to just 21%.

“As Canadians get closer to retirement, many are finding they have not achieved the retirement savings goals they set for themselves, which could lead to Canadians either working longer than they anticipated, or making adjustments to their retirement such as reducing expenses to stretch their income further,” added Kramer.

Canadians also see their debt being repaid by the time they retire, but as retirement draws closer this also is viewed as somewhat less likely. For example, only 15% of those in the 25-34 age group believe they’ll carry any debt into retirement. That number doubles to 31% for those 55-64 years of age.

Past CIBC polls show that Canadians believe they will be debt free by age 55, but many don’t reach this target. As debt is carried closer to Canadians’ target retirement age of 63 outlined in this poll, it can restrict the cash flow available for savings and may lead to Canadians missing the savings goals they have set for themselves.

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