Retirement & Financial Planning Report

When it comes to saving for retirement, Americans are generally aware of the issues but typically lack specific goals and a strategy to reach them, according to a study by the Aegon Center for Longevity and Retirement.

The study found, as have others, that there is a level of “trepidation” about the future of Social Security but that generally stronger confidence in the economy than in recent prior years “has many Americans looking optimistically toward retirement.”

When asked what words individuals associate with retirement, the most common responses are leisure, freedom and enjoyment, all around 50 percent. Fewer than 10 percent said poverty, ill health, dependency on others or loneliness. More than half said they expect to travel and spend more time with friends and family, while other common responses included pursuing a new career and volunteer work.

However, “There is a divide between reality and actions with regard to retirement planning. Only 21 percent have a formal written retirement strategy and 44 percent have a strategy that isn’t written down, while nearly a third (31 percent) has no retirement strategy at all,” it said.

One result is that despite the optimism, there is much uncertainty. For example, more people in the age groups below age 44 are confident versus not confident in being able to achieve a comfortable retirement lifestyle, that flips for those in age groups between 45 and 54, as concerns about impending retirement heighten. After age 65, more are confident than not confident again.