US Investors Admit They Are Not Saving Enough for Retirement

ST. LOUIS, May 11, 2012 /PRNewswire/ -- Some Americans are not optimistic about the possibility of a financially comfortable retirement – or the possibility of retirement in general. According to a survey released today by financial services firm Edward Jones, one in 10 Americans say retirement simply isn't an attainable goal when asked to identify the reason they're not saving enough. Only 32 percent of survey respondents identify hard financial issues, such as the need to focus on immediate expenses as the rationale for their lack of savings.

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"While everyday expenses like education and housing are clearly necessary expenses for many Americans, this survey found that there is still almost one-third of respondents who point to fairly vague reasons for not saving enough, including those with concerns that saving for retirement is unattainable or that it's too early to start," said Scott Thoma, Investment Policy Committee Member at Edward Jones. "We want to remind Americans that taking a proactive approach, no matter how minimal it may seem, is the best way to overcome retirement readiness fears. Investing regularly into a 401(k) or an IRA can be a great option. By working with a financial professional, any investor, whether they are at the beginning of their career or close to traditional retirement age, can work to develop a plan to help them achieve their goals."

Conducted by Opinion Research Corporation, the survey of 565 respondents found that age plays a factor in whether Americans are saving enough. Seventy-two percent of respondents between 18 and 34 believe they are not putting enough money towards retirement. The percentages dropped with the age of the respondents, with just less than half of respondents (47 percent) 65 and older indicating they are not saving enough.

The survey also found that household and family size has a clear impact on retirement savings. While the survey average shows that 32 percent of Americans are grappling with too many current expenses to save for retirement, the percentage increases dramatically for respondents with children between 13 and 17 to 49 percent. "Balancing college and retirement savings is a common challenge for parents.  With limited resources, it's important to create a strategy that will help allocate savings appropriately," Thoma continued.  For respondents with no children, only 25 percent indicate that current expenses are impacting their ability to save.

Other key findings from the survey include:

• Ten percent of respondents believe it is too early to start saving for retirement. Those in the 18 to 34 year old range were the most likely to say so, with 23 percent responding accordingly.
• Single family households are the group most likely to say retirement is not attainable (23 percent).
• Of even the most affluent respondents (those making $100,000 a year or more), less than half (49 percent) believe they are saving enough for retirement.
• Respondents in the Midwest were the most optimistic about their retirement savings levels, with more than one-third (37 percent) saying they believe they are saving enough for retirement.

About Edward Jones 
Edward Jones provides financial services for individual investors in the United States and, through its affiliate, in Canada. Every aspect of the firm's business, from the types of investment options offered to the location of branch offices, is designed to cater to individual investors in the communities in which they live and work. The firm's 12,000-plus financial advisors work directly with nearly 7 million clients to understand their personal goals - from college savings to retirement - and create long-term investment solutions that emphasize a well-balanced portfolio and a buy-and-hold strategy. Edward Jones embraces the importance of building long-term, face-to-face relationships with clients, helping them to understand and make sense of the investment solutions available today.

Edward Jones, which ranked No. 11 on FORTUNE magazine's "100 Best Companies to Work For 2011," is headquartered in St. Louis. The Edward Jones Web site is located at www.edwardjones.com, and its recruiting Web site is www.careers.edwardjones.com. Member SIPC.

Survey was based on 565 telephone interviews of U.S. adults conducted between April 5 – 7, 2012. The margin of error was +/-5 percent.  

SOURCE Edward Jones