ATLANTA, April 18, 2007 — While broad economic shifts are forcing most people to become more self-reliant for their financial needs in retirement, it will take more than consumers' bootstraps to ensure financial security for millions of aging Americans.
A new report from LIMRA International, Matthew Greenwald & Associates, and the Society of Actuaries outlines actions that not only consumers but employers, financial professionals, the financial services industry and government should consider to improve the state of retirement planning.
"According to our research, more than one-third of workers are not saving for retirement. This translates into over 44 million workers who will be at risk of not being able to pay for the basics in retirement, such as monthly bills, housing and health care," said Eric Sondergeld, corporate vice president and director of retirement research for LIMRA. "Unless we all work to improve consumers' retirement planning, our government and social programs will collapse under the strain of taking care of those who are unprepared and cannot take care of themselves."
The new report, Public Misperceptions About Retirement Security: Closing the Gaps (2007), is the second phase of a collaboration among LIMRA, Greenwald and the Society of actuaries that first reported on 10 major gaps in consumer understanding of the risks and challenges of retirement.
"There are a number of strategies available to individuals as they plan for a better retirement," said Anna Rappaport, leading consultant and chairperson for SOA on Post-Retirement Needs and Risks. "A good place to start is to analyze your expenditures and budget and see what you can afford. It is critical that as people plan that they do not forget risk management and the potential to outlive assets."
There is a role that everyone can play to help prepare future retirees make educated decisions and sound financial plans that will allow them to live comfortably in their golden years. It is important that we begin to deal with the ongoing retirement challenges in constructive and collaborative manner.
LIMRA International is a worldwide research, consulting and performance improvement organization that helps more than 800 insurance and financial services companies in 60 countries increase their marketing and distribution effectiveness. Visit LIMRA International at www.limra.com.
Society of Actuaries is an educational, research and professional organization dedicated to serving the public and Society members. The Society's vision is for actuaries to be recognized as the leading professionals in the modeling and management of financial risk and contingent events.
Greenwald & Associates is a premier public opinion and market research company that has conducted customized research for more than 200 organizations, including many of the nation's largest corporations, trade associations, and non-profit organizations.
About LIMRA International
LIMRA International is a worldwide association providing research, consulting, and other services to nearly 850 insurance and financial services companies in more than 60 countries. LIMRA was established in 1916 to help its member companies maximize their marketing effectiveness.