Most People Don't Know How Much They Need to Retire
CREDIT: Retirement Image via Shutterstock
Even though most workers spend decades dreaming about retirement, a majority of workers have no idea how much money they need for retirement, new research has found. Two-thirds of people worldwide said that did not know the amount of money they would need to save for retirement.
That, however, is just one finding that highlights the feelings most people have about retirement. More than 80 percent of people are worried about their financial situation in retirement and just 16 percent of people were confident that their current level of savings was sufficient to cover the financial requirements of retirement.
Most workers feel this way because they are not confident in their own ability to invest and save for retirement. More than half of the respondents felt they did not have the right information needed to prepare for retirement and invest in private pension.
"The strong common global concerns about post-retirement financial security are alarming," said Mark Halverson, a managing director in Accenture’s Financial Services Group, which conducted the research."In the current economic environment, people are increasingly worried about their financial future. They are willing to save money but have limited financial knowledge and limited saving abilities to actually do so."
Independent financial advisers were the most trusted source of retirement advice for a majority of workers. After financial advisers, most people trusted friends, family, insurers and banks. Workers, however, were most open to retirement plans that had clear and personalized services explaining the plans to them.
"These findings reveal a major unmet demand for retirement planning that industry professionals can help address," Halverson said. "However, they will need to shape their products and services in a way that will help people take action and better prepare their future."
The information in this research was based on the responses of more than 8,000 people from 15 countries around the world. The research was conducted by Accenture.