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October is National Retirement Security Month. A new poll from TIAA, however, found that many Americans feel anything but secure about their retirement outlook.
“Americans clearly want peace of mind in retirement, but the reality is that too many people either aren’t saving enough or aren’t confident in their ability to plan,” said Kourtney Gibson, CEO of Retirement Solutions at TIAA.
Nearly two-thirds of respondents believe the dream of retiring between the typical ages of 65 and 70 is unattainable, with many planning to work until they physically no longer can do so. Only 37% now believe retiring on time is realistic for them. Nearly one-third are not confident they will be able to cover day-to-day expenses for the remainder of their lives.
As a result, a number of Americans are considering unconventional and risky ways to save for retirement. In fact, according to the survey, 1 in 10 Americans consider winning the lottery or investing in luxury handbags a viable retirement strategy.
The survey exposes a stark contradiction between what Americans want in their golden years and what they actually are doing to achieve retirement security. One in five adults currently are not saving for retirement, including 5% who say they have no plans to ever start. Just as surprising, 1 in 4 Americans now anticipate the need to continue working in some capacity just to cover basic expenses.
Although 44% of respondents expect Social Security to be their primary source of income in retirement, annual cost of living adjustments are not keeping pace with the rising cost of living.
"Historically, Social Security has been relied upon for retirement, but it was never designed to be the only source of income," said David Nason, CEO of TIAA Wealth Management. "With the support of professional financial advice, Americans must protect against the risk of outliving savings by building a holistic financial plan that includes long-term income solutions to supplement Social Security."
Americans recognize the value of lifetime income tools in retirement, with 92% saying they are interested in having a guaranteed source of income, aside from Social Security, to help cover day-to-day expenses.
“We're seeing the consequences of a system that has left millions without proper guidance,” Gibson said. “TIAA's findings reaffirm the importance of products that offer actual guarantees, personalized financial advice and workplace retirement plans in helping people achieve the retirement security they deserve."
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