Only 1 in 3 Americans have confessed to stopping retirement savings at least once, according to a new report from the Indexed Annuity Leadership Council (IALC).
Despite this poor showing, IALC found that a whopping 94 percent of Americans give themselves a passing grade in financial literacy.
“It is worrisome that so many Americans are confident in their financial literacy, but fail to execute the basics of retirement saving,” said Jim Poolman, Executive Director of the IALC.
As Poolman points out, it is difficult to save for retirement consistently, given life’s ups and downs. Many people feel reluctant to commit to a savings and investment plan. Others feel daunted by the wide range of choices available.
According to IALC, nearly half of boomers don’t know that there are financial products that deliver lifetime income.
More than a quarter of Americans say they will miss their health insurance the most when they retire, which costs the average American $250,000 over their retirement.
These are worrying statistics. People need to save at least 5% of their income each month, from an early age, in order to one day have adequate funds for retirement. Yet, too few are doing this.
Consider a team approach – one that starts with a visit to your credit union. Your CU can offer you options, and give sound financial advice that’s untainted by the profit motive.
By sitting down and building a plan with a CU professional, you make it that much more likely that you will stick with that plan, even during life’s tougher moments.