WASHINGTON, Oct. 30, 2017 /PRNewswire-USNewswire/ -- The financially insecure American has become reality – especially when it comes to retirement.
New survey results released today by the Indexed Annuity Leadership Council (IALC), the council committed to providing complete and factual information about the use of indexed annuities as part of any balanced financial plan, provide insight into American's retirement savings – or lack thereof.
Personal savings hold a big part in the retirement equation. To live comfortably during their golden years, Americans need to save at least eight times their ending salary by retirement. However, the IALC's alarming new data paints a clear picture this is not happening, with one in five Americans admitting they have nothing saved for retirement at all.
For Americans who have saved, the survey reveals 56 percent – more than half – share they are unsure if they will outlive their retirement savings. As life expectancy increases, it is important Americans feel confident in their retirement savings situation and right now nearly 90 percent do not.
This comes as no surprise as less than a third of Americans have $100,000 or more saved to carry them through retirement, with more than 50 percent sharing their savings amount is $99,999 or less. More than half do not even have a will.
Savings insecurity is not diminishing. In fact, close to 25 percent of Americans are more concerned about their retirement savings today than they were this time last year and the uncertainty level for more than 50 percent has remained unchanged. Re-evaluating the way Americans take action to save more for retirement is crucial, especially with the concern around tax reform and the future of Social Security.
To provide Americans with the knowledge and resources they need for planning ahead, the IALC has created a new, interactive game – Master of Retirement.
"We aim to educate at the IALC, which is why we wanted to do our part to raise awareness about the pending retirement crisis," said Jim Poolman, Executive Director of the IALC. "Key insights from our new data reveal Americans are questioning if their retirement savings will last. Our hope is they will see our newly released quiz-style game as an education tool to spark a desire to find a retirement savings plan right for them."
Majority of Americans (56 percent) want to ensure they save enough to last their entire retirement. However, only one in five grade themselves an 'A' when describing their financial literacy. Data released by the IALC from April 2017 shows most Americans are at risk of an unstable retirement. In fact, only nine percent are focused on diversifying their portfolio, which is essential to manage financial risk, especially when it comes to retirement.
In addition to Master of Retirement, the IALC has several resources to help Americans address their retirement fears, mitigate risks, and plan for a better retirement, including retirement specific calculators they can access from the privacy of their own home.
Results based on Porter Novelli's Spring Styles among 6,662 U.S. adults ages 18+.
About the Indexed Annuity Leadership Council
The Indexed Annuity Leadership Council (IALC) brings together a consortium of life insurance companies with a commitment to providing consumers, the media, regulators and industry professionals factual information about the use of fixed indexed annuities. Namely, that these products provide a source of guaranteed income, principal protection, and interest rate stability in retirement as well as balance to any long-term financial plan. To date, IALC member companies have more than 1.3 million policies in force with more than $84 billion in assets.1
1 Secure Retirement Institute, U.S. Individual Annuity Yearbook (2015 Data) at page 46.
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SOURCE Indexed Annuity Leadership Council