More than 70 Percent of Budget Conscious Consumers Feel Financially Unprepared for Retirement
More than 60 percent of those polled by national nonprofit ACCC say their biggest fear is having enough money to live on each month once they retire.
(Boston, MA) – December 10, 2015 – The vast majority of budget-conscious Americans feel financially unprepared for retirement, according to a new survey by American Consumer Credit Counseling.
Nearly 73 percent of those polled during the month of November by ACCC admit they don’t feel financially prepared to retire.
In addition, about 62 percent of consumers polled say that their biggest concern come retirement is having enough money to live on each month. Just 19 percent say they are concerned with long term health care needs and costs, and less than 16 percent of respondents fear out-living their retirement savings or not having enough assets to leave to heirs.
“Retirement is a major challenge for millions of Americans who are struggling to afford daily expenses such as food and housing, and who are dealing with the added burden of debt,” said Steve Trumble, President and CEO of American Consumer Credit Counseling, which is based in Newton, Mass. “As this poll shows, it’s never too early to start saving for retirement. It is important that consumers plan for their financial future and decide when and where they plan to retire, and how much money they realistically need.”
Despite the challenges associated with saving for retirement, many consumers are failing to seek retirement advice. Almost 47 percent of those polled admit they don’t seek retirement advice from anyone, while 28 percent say they rely on friends or relatives with previous retirement experience.
“It’s no secret that planning for retirement can be a daunting task, and it’s one that’s even more difficult without the appropriate knowledge or resources,” added Trumble. “Consumers may not know how much money they need to retire or basic steps that can help them get on the right track, and that’s why seeking advice from knowledgeable sources is so critical.”
About 86 percent of individuals polled feel they will need at least half of their current income to retire comfortably. But a full 52 percent of those consumers expect they will need 70 or more percent of their current income to retire comfortably.
The online poll of 107 consumers was conducted at ConsumerCredit.com by American Consumer Credit Counseling - a national non-profit that helps consumers with budgeting, financial education and debt management.
According to the survey, personal savings as a source of retirement ranked last among respondents, while 401K (34 percent) and social security (26 percent) dominated as the key sources for retirement income.
The survey also found that almost 40 percent of respondents are unsure where they plan to retire while more than 25 percent plan to stay where they currently reside.
You can view an infographic illustrating the poll results here.
ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
- For credit counseling, call 800-769-3571
- For bankruptcy counseling, call 866-826-6924
- For housing counseling, call 866-826-7180
- Or visit us online at ConsumerCredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management and debt relief through education, credit counseling, and debt management solutions. Each month, ACCC invites consumers to participate in a poll focused on personal finance issues. The results are conveyed in the form of infographics that act as tools to educate the community on everyday personal finance issues and problems. By learning more about financial management topics such as credit and debt management, consumers are empowered to make the best possible financial decisions to reach debt relief. As one of the nation’s leading providers of personal finance education and credit counseling services, ACCC’s certified credit advisors work with consumers to help determine the best possible debt solutions for them. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®) and the Association of Independent Consumer Credit Counseling Agencies. To participate in this month’s poll, visit ConsumerCredit.com and for more financial management resources visit TalkingCentsBlog.com.