Study: Americans Overconfident about Retirement Financial Situation

March 17, 2005 (PLANSPONSOR.com) - Although 70% of Americans are confident about their future retirement financial situation, much of this confidence may be overoptimistic, according to a recent study.

Despite the high levels of confidence, only 47% of Americans have actually estimated how much money they will need in retirement, according to the study from Thrivent Financial for Lutherans. Only 49% regularly monitor their retirement assets, as well.

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“Our survey reveals too many Americans are operating in the dark when it comes to retirement planning,” said Nikki Sorum, Thrivent Financial senior vice president of marketing and products, in a press release. “Confidence needs to be built on real needs such as determining one’s financial needs and then developing a strategy for reaching those goals.”

The study indicates that 26% of Americans have saved less than $5,000 for retirement; not surprisingly however, younger workers (18 to 34) are the most likely to have saved so little, with 39% of this group having saved less than this amount. Those with incomes below $35,000 also are more likely to be in this group, with 43% having saved less than $5,000. However, 20% of those between 50 and 64 and one in seven with incomes over $75,000 annually have saved less than $5,000.

There is some worry about retirement, however, Twenty-two percent claimred that they are worried about retirement financials, with 4% claiming they are in a “panic”. Even those with over $75,000 in annual income are worried (23%) and panicked (2%).

The study was conducted for Thrivent Financial for Lutherans, a Fortune 500 financial services group, of 661 non-retired American workers.

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