When planning for an individual’s financial future, they may seek out ways to more accurately save money and improve their standing. Having more information may aid some Americans in better setting up their own personal finance plan.
Approximately 36 percent of Americans with a retirement plan connected to their workplace felt that being provided with an estimate about how much they will receive in retirement income was “very useful,” according to a report from the Employee Benefit Research Institute. Another 49 percent specified that having this information was “somewhat useful.”
“It is possible that these respondents’ current participation in employment-based plans has already provided them with a sense for what their retirement savings balances would provide,” said Jack VanDerhei, research director at EBRI and author of the report.
Nearly 60 percent of those polled felt that the estimated income each month from their plan was around what they thought, the report explained. Just 17 percent of those polled noted that they would contribute more to their retirement savings plan after examining estimates. Approximately 35 percent of those who thought that the level was lower than they initially believed would start putting more money into these accounts.
Many individuals retire earlier than expected
Even with many Americans looking to save properly and build a solid financial strategy, a number of individuals may find themselves retiring before they actually expect to. According to a report from PNC Financial Services Group, Inc., close to 60 percent of those who are 70 years of age or younger retired earlier than planned. Despite this, close to half of those who are in the midst of strategizing for retirement felt that they would need to work past the average retirement age.
“The survey clearly shows that the age at which people expect to retire is not always in their control,” said Celandra Deane-Bess, vice president and senior wealth planner with PNC. “Economic uncertainty, employer actions and unexpected health issues often force individuals to retire earlier than they planned which puts a premium on sound financial habits early.”
Just 38 percent of women noted they are on-track for retirement, the report showed. However, close to half of men polled said the same thing. A total of 79 percent of men explained they made saving for retirement a key part of their finances, with another 70 percent of women saying the same.