This might not come as a surprise to students of retirement, but it does shed light on the need for Americans of all ages to plan — and preferably with the help of a financial planner who is a fiduciary and one who provides comprehensive holistic advice — for their future.
Consider: Two-thirds of households have less than $100,000 saved for retirement, according to an election-night survey of more than 1,000 American voters released by Certified Financial Planner Board of Standards (CFP Board) in collaboration with research-led consulting firm, Heart+Mind Strategies.
The survey showed that despite the strong economy:
- More than 60% of working voters feel it’s now harder to retire on time than it was five years ago (even though the market is up 56% over the past years);
- The majority (58%) predict it will remain difficult to retire on time five years from now; and
- While almost two-in-three (62%) are confident in their ability to maintain their savings as they transition to retirement, less than half (45%) think their savings will last them through retirement.
The silver lining? According to the CFP Board, today’s political climate and the current state of affairs in our country is positively impacting Americans’ perspective when it comes to managing their finances, with one-in-three saying they are now much more proactive about setting and following a financial plan.
They better given this fact: “By 2060, there will be more than 98 million Americans who are 65 or older,” Kevin Keller, chief executive officer of the CFP Board, said in a press release. “People are also living longer than ever before. In many cases, retired Americans will need to support themselves for 10, 15, 20 or even 30 years, meaning people need to save earlier, save more and be better prepared for the financial challenges of retirement.
The other bit of good news from the survey:
- While many consumers aren’t working with a financial adviser, 60% of consumers are likely to work with an advisor for their retirement needs.
- 82% of consumers want a financial adviser who can provide a comprehensive plan that takes their holistic financial situation into consideration.
In a Retirement Daily podcast, Keller discussed the CFP Board’s survey and implications for those planning for or living in retirement.