Are You Concerned About Retirement?

We hear about America’s looming retirement crisis often. What does this mean to us locally? AARP recently conducted a survey of registered voters in New York State aged 35 to 69 specifically addressing retirement. The survey segregated the respondents into two groups, Baby Boomers (or Boomers) aged 51-69 and Gen Xers aged 35-50. The results confirm the media portrayal of retirement readiness as a crisis.

In New York State, 74% of Gen Xers and 62% of Baby boomers worry about not having enough money saved for retirement. Specifically, Onondaga County is slightly better with 70% of Gen Xers and 57% of Boomers. In Onondaga County the second biggest worry for people in the Gen X group is not planning enough for retirement (62%), followed by having an unexpected emergency that cannot be paid (57% for Gen X and 53% for Boomers). In New York State 30% of Gen Xers and 38% of Boomers do not have any retirement savings. Onondaga County, again, is slightly better with 24% of Gen Xers and 28% of Boomers with no retirement savings. In Onondaga County, 16% of Gen X and 23% of Boomer workers surveyed are not covered by a workplace retirement plan.

AARP research shows that workers are 15 times more likely to save for retirement if their employer offers a retirement savings plan. The biggest obstacle to saving for retirement reported was not having money left after paying bills. Housing related expenses are the area of biggest concern.

There are many factors that have contributed to the current situation. There has been a shift away from traditional pension plans and a rise in optional 401k, 403b and Individual Retirement Accounts (IRA). Many other factors are contributing including increased longevity, increased student loan debt, wage stagnation, rising living expenses, aging parents, adult children moving home, changes to and lack of understanding and confidence in the social security system, multiple job changes, career changes, divorce, the economy and a culture of spending versus saving. This situation will affect even the people who have enough saved, as well as those who have not.

Clearly, the people who have not saved for retirement will have challenges. It is never too late to meet with a financial planner and review your situation and set reasonable goals. The advisors at Hansen’s are using a professional planning program to assist with the analysis and projections in retirement planning. Please contact us to set up an appointment if you have any concerns about your retirement.

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