A
recent survey of people with retirement plans, covering a wide range of
ages, revealed a significant drop in confidence in the soundness of
their retirement strategies and lack of confidence in their financial
future in general. The survey was conducted by Spectrem Group, a
Chicago-based research and consulting organization specializing in
affluent and retirement markets, and compared financial confidence in
May and last January. The results showed a significant drop in only
five months.
Those surveyed
were asked if they expected their personal financial situation to be
better one year from the time the survey was taken. In January, 77%
felt their finances would improve. By May that number had dropped
significantly to 53%. The decrease was most significant in the over-50
age group, with a decline from 68% in January to 48% in May.
At the same time,
the survey indicates the number of people who feel they have a sound
retirement investment policy also is declining. In January 2006, only
43% believed they had a sound retirement policy. That meager percentage
dropped to 39% a year later in January 2007, and further declined to
31% in May. Those with larger retirement accounts felt somewhat more
confident in their investment strategy than those with smaller accounts
of less than $100,000.
The pessimistic
attitude is blamed in part on rising gasoline prices, the slow
job-growth rate that is at its lowest level in three years, and
all-time high personal debt levels, according to the Spectrem report.
"Advisors should
treat these numbers as a warning flag alerting them to talk to their
clients," said Spectrem director Gerry O'Connor.