Forty percent of Americans say they are not well informed about generating retirement income, investing retirement assets or managing risks and expenses, but they also say they are willing to turn to financial advisors for some assistance, according to a new survey.
More than a third say they trust financial advisors for assistance, including 44% of retirees, according to a recent survey by Limra, a research and consulting organization based in Windsor, Conn.
"The good news is people are willing to turn to financial planners/advisors to seek help when planning for retirement," said Matthew Drinkwater, associate managing director for Limra retirement research. However, 35% of younger people said they were more likely to turn to family and friends for financial help than advisors, compared to 20% for older consumers.
Less than half of Americans plan for more than 20 years of retirement, the survey shows, and few have planned for how they will pay for health care, long-term care, rising taxes and inflation, or what they will do if they outlive their assets.
"Many of today's retirees and future retirees will not be able to depend on a pension or a retirement health plan," Drinkwater said. "So it is particularly troubling to see that consumers are not as interested to learn how to generate retirement income or manage risks like health care, which will be essential for financial security."
Less than 35% of those surveyed feel they are saving enough to last throughout their retirement years, and two-thirds of those people say the reason is because they do not have enough money left over to save for retirement.
"I hope our survey brings more attention to the need for Americans to systematically save throughout their lives and then develop a comprehensive retirement plan that addresses all the pitfalls that they may face in their later years" Drinkwater concluded.
-Karen DeMasters