Many Americans who are looking toward securing their financial future may be feeling better about their situation. This could be important, especially as it could mean they are getting their budgeting and planning in order.
Overall retirement optimism rose to a level of 37 during the first quarter on the Investor and Retirement Optimism Index completed jointly between Wells Fargo and Gallup. This was 12 points higher than the fourth quarter’s level. However, it is still lower than the level of 43 recorded during the second quarter of last year.
“It is both interesting and encouraging to see that retirees are more optimistic,” said Joe Ready, director of Wells Fargo Institutional Retirement and Trust. “Dating back to May of 2012, retirees have responded to this poll every quarter with much more pessimism about their situation than have the non-retired – this is a real shift, and most likely correlates to the combination of a stronger stock market and the prospect of higher interest rates in the future.”
Those who have not yet retired had an optimism level of 35 during the first quarter, which was three points higher than the fourth quarter’s level, the report explained.
Genders differ on retirement confidence
While there are a number of Americans who are headed to – or already in retirement – that feel confident about their situation, these figures change when considering gender. According to a report from TIAA-CREF, only 56 percent of American women feel they are saving enough money for retirement, while 65 percent of men said the same.
“Women have unique needs when it comes to achieving financial well-being,” said Teresa Hassara, executive vice president and head of the institutional business at TIAA-CREF. “They tend to live longer than men. They often interrupt their high-earning years to care for children or elderly parents, which is why it’s so important that women connect with financial advice they trust so that they feel empowered to act on it.”
A notable portion of the women polled explained that they would like to have help with a financial strategy in order to better prepare for retirement, the report explained. However, close to one-third of those polled noted that they do not have the time to actually seek out aid to learn more about their situation.