How does your retirement confidence compare?

How does your retirement confidence compare?

Key Points

  • A new survey shows both workers and retirees report increased confidence in being financially prepared for retirement.
  • Learning what others are doing well can help you feel more confident in your retirement plans. 
  • Your advisor can ensure you’re maximizing your savings and investment plans to meet future needs.  

Retirees’ financial confidence reached all-time highs this year, and those still working also report new levels of confidence in their ability to meet financial needs in retirement. These insights can be a source of education and inspiration for those who want to feel more confident in their retirement planning. 

The new data comes from the Employee Benefit Research Institute’s 2019 Retirement Confidence Survey, the longest-running survey of its kind measuring worker and retiree confidence about retirement, partially underwritten by Columbia Threadneedle Investments. 

Let’s take a look at what today’s working Americans are doing to reach financial confidence in retirement.

Workers are committed to saving

The majority of U.S. workers are confident they’re doing a good job overall of saving for retirement. They’re also saving in a variety of ways, feeling sure they know how much they’ll need for future expenses, which is a great first step toward being prepared. 

Few have calculated how much money they need for retirement

Despite high confidence levels and a commitment to saving, less than half reported actually calculating what their retirement needs will be. This highlights the importance of working with your Ameriprise advisor for personalized advice based on your goals and needs. 

What’s holding workers back from saving more? 

Debt and competing financial priorities are keeping many workers from achieving their retirement savings goals. More than half of workers surveyed struggle with saving for retirement and other financial goals at the same time.  

Workers report that debt is negatively impacting their ability to: 

While debt and competing financial needs keep workers from saving more, income stability is still the highest financial priority in retirement. Your advisor can provide options for guaranteed monthly income products, such as annuities, and determine whether they could help meet your specific needs and goals.

Key insights from today’s most confident retirees

Retirees express increased confidence in their ability to afford the lifestyle they’re accustomed to and in having enough to last their entire life. What contributes to overall financial confidence?

  • Ability to handle expenses.
    Planning ahead so that you can live comfortably in retirement is key to confidence. Your advisor can help balance your investments to meet your needs, now and in retirement.
  • Being prepared for both expected and unexpected expenses.
    Starting early and working proactively with an advisor delivers personalized advice that can prepare you for any circumstance. More than 4 in 10 retirees retired earlier than planned due to changes at their company or a health problem or disability.
  • Accurately calculating expenses in retirement.
    This leads to financial confidence, from knowing your overall expenses to preparing for health care and long-term care needs.

Inspired to make the most of your savings?

Contact your advisor to ensure you’re on track to achieving your financial goals in retirement. Your advisor can:

  • Provide you with financial advice based on your goals and needs.
  • Help you estimate how much you’ll actually need in retirement.
  • Recommend investments and solutions based on your goals.
  • Meet with you regularly to review your goals, progress and investments.

Your goals are individual. We believe financial advice should be too.

Confidence in your financial future begins with confidence in your financial advisor.

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