Preparing for retirement is something that many Americans have factored into their financial strategy in some capacity. This can be a good thing to properly secure a financial future, but there are still some individuals who may need some work to properly manage their situation.
More than 90 percent of Americans explained that their retirement costs will likely be as much as living now does, or even a little less, according to a report from Franklin Templeton. However, nearly two-fifths of individuals haven’t even begun saving for their retirement expenses.
“Americans have long struggled with preparing for the realities of retirement,” said Michael Doshier, vice president of retirement marketing for Franklin Templeton Investments. “The survey uncovered several contradictions related to the degree of understanding and often divergent approaches to retirement.”
Despite the issues that come with retirement savings, 72 percent of those who are not yet at this point in their lives are excited about the point where they will no longer need to work, the report showed. But just one-quarter felt that their retirement situation would be better than their parents’ generation. Another 41 percent felt it would be worse than in the past, while one-third explained that the situation may be similar.
Some Americans may need to learn more about retirement
While a number of individuals are worried that they may not be able to retire comfortably, they may just need more financial education. According to a report from Genworth, just 46 percent of Americans actually go out of their way to learn about finances. There are many reasons for this, including 37 percent noting that they don’t have the time, and 45 percent being overwhelmed by the complex nature of financial products available.
“It is not lack of access to information that is holding many Americans back from improving their understanding of financial matters,” said Dr. Barbara Nusbaum, a New York-based psychologist and money coach. “Rather, it is a feeling of being overwhelmed – by the complexity of financial products, by the amount of time perceived as necessary to improve one’s financial knowledge and a disconnect between financial needs and personal needs.”
Another 18 percent felt that they were not sure where to start when it came to learning more about financial topics, the report added.