Despite Having a Plan, the Majority of Americans Would Give Themselves a 'C' Grade or Lower on Their Retirement Savings
January 16 2020 - 8:30AM
Business Wire
New survey conducted for TD Ameritrade
illustrates the evolving timelines, expectations and personal
disconnects on the path to retirement
While the majority of Americans age 40 and over (60%) claim to
have a well-defined retirement strategy, almost the same number
(58%) would give themselves a ‘C’ grade or lower on their
retirement savings, according to a new survey conducted by The
Harris Poll on behalf of TD Ameritrade.
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Americans' Road to Retirement (Graphic:
TD Ameritrade)
Despite planning, the number of Americans who have at least
$100,000 saved for retirement doesn’t change significantly until
reaching their 60s:
- Ages 40-49: 41%
- Ages 50-59: 46%
- Ages 60-69: 62%
- Ages 70-79: 67%
“Americans don’t ramp up their retirement savings until they
reach their 60s – this is where we see the biggest shift in saving
attitudes,” said Dara Luber, senior manager of retirement at TD
Ameritrade. “At the same time, the top retirement advice they’d
give to their younger selves would be to start saving (68%) and
investing (60%) earlier in life.”
Things may not always go as planned
- The average target age to retire is 67, but only 60% of those
in their 40s and 65% of those in their 50s think it’s likely
they’ll be able to retire at their desired age.
- Sixty-six percent of pre-retirees would retire today if they
had the financial means to do so.
The road to retirement can be winding Americans in their
40s and 50s, as well as those with $250K+ in investable assets, are
especially likely to change course with their retirement plan.
- Have changed their retirement savings plan at least once:
- Ages 40-49: 59%
- Ages 50-59: 58%
- Ages 60-69: 37%
- Ages 70-79: 19%
- Twenty-five percent of those with $250K+ in investable assets
have changed their retirement plan more than six times.
- Career (26%) and family (22%) events are the most common
impetus for Americans to reassess or make changes to their
retirement plans. One in 10 (9%) Americans say new political
leaders have triggered them to reassess or make changes to their
retirement plans.
- Nearly half (46%) of those in their 40s have already withdrawn
from their retirement accounts. Meanwhile, only one in three (31%)
Americans 50 and over are taking advantage of catch-up
contributions.
The effects of a longer lifespan
- With a weakened reliance on Social Security, Americans are also
adjusting to living longer.
- Eight in 10 (81%) are shifting their financial strategies to
prepare for a potentially longer lifespan.
- Most Americans also plan to cut back during retirement in
anticipation of longevity.
- To prepare for a potentially longer lifespan, three in five
(59%) plan to reduce their overall expenses during retirement.
- Those with higher assets are planning to lean on financial
advisors and lower retirement withdrawal rates:
- Thirty-eight percent with $250K+ in investable assets plan to
get help or are getting help from a financial advisor on a how to
plan during retirement.
- Thirty-five percent with $250K+ in investable assets plan to
take less or are taking less out of their retirement accounts
during retirement.
About TD Ameritrade Holding Corporation TD Ameritrade
provides investing services and education to approximately 12
million client accounts totaling approximately $1.3 trillion in
assets, and custodial services to more than 7,000 registered
investment advisors. We are a leader in U.S. retail trading,
executing an average of approximately 800,000 trades per day for
our clients, more than a quarter of which come from mobile devices.
We have a proud history of innovation, dating back to our start in
1975, and today our team of 10,000-strong is committed to carrying
it forward. Together, we are leveraging the latest in cutting edge
technologies and one-on-one client care to transform lives, and
investing, for the better. Learn more by visiting TD Ameritrade’s
newsroom at www.amtd.com, or read our stories at Fresh
Accounts.
Brokerage services provided by TD Ameritrade, Inc., member FINRA
(www.FINRA.org) / SIPC (www.SIPC.org)
Source: TD Ameritrade Holding Corporation
About The Harris Poll The Harris Poll is one of the
longest-running surveys in the U.S., tracking public opinion,
motivations and social sentiment since 1963. It is now part of
Harris Insights & Analytics, a global consulting and market
research firm that strives to reveal the authentic values of modern
society to inspire leaders to create a better tomorrow. We work
with clients in three primary areas; building twenty-first-century
corporate reputation, crafting brand strategy and performance
tracking, and earning organic media through public relations
research. Our mission is to provide insights and advisory to help
leaders make the best decisions possible. TD Ameritrade is separate
from and not affiliated with the Harris Poll, and is not
responsible for their services or policies.
Survey Methodology This survey was conducted online
within the United States by The Harris Poll on behalf of TD
Ameritrade from August 30 to September 10, 2019, among 2,000 U.S.
adults ages 40-79 with at least $25,000 in investable assets. The
audience was divided into four decades: 40-49 (n=500), 50-59
(n=500), 60-69 (n=500) and 70-79 (n=500).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200116005087/en/
For Media: Tim Osiecki, 201-369-5908 Corporate Communications
timothy.osiecki@tdameritrade.com @TDAmeritradePR
For Investors: Jeff Goeser, 402-597-8464 Managing Director,
Investor Relations jeffrey.goeser@tdameritrade.com
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