In a new survey about preparing financially for retirement,
Ipsos found that
even though seven out of ten (71%) of over 1,000 adults aged 25 and older said
they were personally in control of their finances and make financial decisions
themselves, half of those who are not yet retired (48%) believe they will not
have enough money to maintain their current lifestyle in retirement and half of
those already retired (53%) are concerned about their current financial
situation.
"When we asked respondents if they wish they had a pension,
half said yes, even among those aged 25-34. This was surprising considering how
far removed this younger generation is from the days of defined benefit/pension
plans. Whether they hit the job market 10 years ago or two years ago, younger
Americans have experienced market bubbles bursting first-hand, which has
seriously eroded their confidence in the equity markets. So, it's a smart and
rational response to want something safe and secure now. The ramifications of
this market dynamic on the investment choices Americans will make over the next
30 to 40 years is only now coming into focus. And, make no mistake, even the
younger generation is very realistic about their prospects for retirement,
especially when you find that only 4% of them believe that Social Security will
provide enough income to live in retirement," according to Peter Saracena,
Senior Vice President at Ipsos.
As part of the research, Ipsos asked
about the potential for a fixed-rate annuity inside of 401(k)s that could be
contributed to over time, that was portable from one plan to another if you left
your job, that would provide a guaranteed lifetime income, and that would pay a
lump sum to beneficiaries upon death if the account balance exceeded the amount
already paid out. Overall, three quarters (74%) said they would like having this
option available, with 83% of those 25-34 feeling the same way. More than half
of all respondents (55%) felt that having this 401(k) annuity option would be
like contributing to a pension.
Among those that do not currently have a
401(k), four out of ten (38%) said they would be more likely to participate if
this annuity option was available. Eight in ten (77%) of those likely to
participate in a 401(k), if available, said that they would allocate a portion
of their regular contribution to the annuity product, and 81% said they would be
likely to ask their employer to allocate the match to the annuity. More than
half (54%) said they would have a more favorable opinion of their employer if
the company offered the option to contribute the match to the
annuity.
Given that half of those with 401(k)s have balances of less than
$5,000, it should come as no surprise that seven out of ten adults not yet
retired (69%) say they have a lot more to do financially before they are ready
to retire. Unfortunately, while there is no silver bullet to fulfill the
retirement needs of Americans, and four out of ten (38%) currently believe that
they will outlive their retirement savings, creating an understandable and
easily navigated pathway toward a guaranteed retirement lifetime income stream
seems not only appropriate, but an absolute necessity.
These are some of
the findings of an Ipsos poll conducted April 21 to May 4, 2010. For the survey,
a national sample of 1,082 adults aged 25 and older from Ipsos' U.S. online
panel were interviewed online. A survey with an unweighted probability sample of
1,082 and a 100% response rate would have an estimated margin of error of +/-
3.0 percentage points 19 times out of 20 of what the results would have been had
the entire adult population aged 18 and older in the United States had been
polled. All sample surveys and polls may be subject to other sources of error,
including, but not limited to coverage error, and measurement error.