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SAN FRANCISCO--(BUSINESS WIRE)--Many people continue to feel the effects of a rocky economy, however the majority of older Americans are confident in their retirement preparedness, according to Charles Schwab’s latest quarterly retirement pulse survey findings released today. The data shows that 54 percent of those age 65 and older feel confident in their retirement readiness and reveals that this group is twice as likely to feel confident as those age 18-34 (26 percent). Nearly half (44 percent) of boomer generation respondents express confidence in their retirement readiness.
While older generations tend to be more confident when it comes to retirement readiness, Schwab’s survey finds room for improvement. Twenty-one percent of people age 65 and older and 26 percent of boomers still lack confidence about their retirement. Across all age groups surveyed, the number of people with concerns about retirement increases to 39 percent.
“Planning for retirement can seem daunting no matter how young or old a person is, but it all starts with a practical plan that can help address and alleviate concerns and boost confidence,” said Carrie Schwab-Pomerantz, senior vice president, Charles Schwab. “We know from our survey findings that across all age groups only 39 percent of people have actually crunched the numbers on retirement savings. So while it is reassuring to see confidence levels relatively high, we know that there is some ground to make up in terms of people sitting down with a plan.”
According to the results, working boomers who have planned for retirement were most likely to consult with a financial professional. Fifty-three percent have estimated how much they will need in retirement and nearly half (49 percent) of working boomers who have planned have done so with the help of a professional.
In addition, Schwab’s survey finds that along with confidence and the desire to seek professional help, dedication to saving for retirement also grows with age and peaks just before entering retirement. Although retirement takes priority for all age groups, boomers are nearly three times more likely to save for retirement than a vacation (74 percent versus 24 percent) while younger people age 18-34 are the most likely to prioritize saving for a vacation, with 44 percent electing this option.
Not surprisingly, uncertainties about retirement expenses still pose concerns despite growing confidence. More than one-third (37 percent) of boomers surveyed indicate that unexpected expenses such as medical or health costs in retirement are the most concerning aspect of retirement, followed by outliving savings (18 percent).
About the Study
The Charles Schwab Retirement Survey was conducted by Kelton Research between May 12 and May 20, 2011 using Random Digit Dialing of listed and unlisted numbers. Quotas are set to ensure reliable and accurate representation of the entire U.S. population ages 18 and over. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the study of adults ages 50 to 65 years old, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.4 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample. For the study of the entire U.S. population over age 18, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 2.2 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.
About Charles Schwab
The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than 300 offices and 8.1 million client brokerage accounts, 1.4 million corporate retirement plan participants, 736,000 banking accounts, and $1.7 trillion in client assets as of May 31, 2011. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. Independent investment advisors are not owned, affiliated with or supervised by Schwab. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and mortgage services and products. More information is available at www.schwab.com and www.aboutschwab.com. (0611-3935)
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