As the New Year approaches consumers are taking time to review multiple aspects of their lives — from weight loss to finances — to see if there is room for improvement. In fact, 4 in 10 Americans make New Year’s resolutions, according to a 2014 Marist poll1. With LIMRA Secure Retirement Institute (LIMRA SRI) research showing only half of Americans are confident they will be able to live the lifestyle they want in retirement, setting a New Year’s resolution around retirement savings could be beneficial for many.
Some ways consumers can help improve their retirement:
- Create a formal retirement plan
- Participate in employer-sponsored retirement savings plans and contribute at least what the employer matches or make contributions to an IRA
- Reach out to a financial advisor and review your monthly retirement income estimate to see if you’re currently saving enough to meet your expected financial needs in retirement.
LIMRA SRI finds that 70 percent of pre-retirees do not think they are well prepared for their retirement and two-thirds don’t think they have saved enough for retirement. Creating a formal retirement plan can help pre-retirees and retirees have more confidence in their retirement. Fifty percent of pre-retirees and retirees with a formal plan feel very prepared for retirement as opposed to just 17 percent of those who don’t have a plan.
LIMRA SRI studies show that 61 percent of all workers are saving for retirement through their workplace. In fact, 8 in 10 workers with access to employer retirement savings plans are making contributions to them.
Retirement income estimates help improve the retirement decisions of workers. LIMRA SRI research shows 6 in 10 workers were savings more as a results of receiving their income estimate from a financial professional. As a result of seeing their estimated income, 48 percent increased their retirement savings. Considering only 3 in 10 pre-retirees feel well prepared for retirement, this is the perfect time to review your retirement savings goals.