Fewer Americans Prepared for Retirement

A recent study from MIT revealed that nearly half of Americans die with less than $10,000 in assets. Whether or not that’s due to poor planning or some unexpected spending, it’s still a shockingly high number.

According to the latest survey on retirement preparedness from Ameriprise Financial (NYSE: AMP), less than 70% of Americans say they are making preparations for retirement, the lowest percentage in the three years the firm has been conducting the survey.

The survey looked at 30 U.S. metropolitan areas to find out where Americans are most prepared for retirement. The top three cities are Hartford-New Haven, San Diego, and Minneapolis-St. Paul. The three cities where residents are least prepared for retirement are Washington D.C., Charlotte, and Indianapolis.

An Ameriprise executive noted:

“While the majority of Americans we surveyed express positive feelings about retirement, we’re still seeing a significant lack of confidence – in fact, nearly half admit they’re concerned about outliving their savings,” says Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial. “The economic environment surely contributes to this uncertainty. …”

And while more than half of all Americans say that political candidates positions on Social Security and Medicare are very likely to affect their votes, the debate over the future of these programs has little impact on personal retirement savings.

More than half of respondents said that health care issues (60%), Social Security (55%), taxes (53%), and Medicare (52%) were very likely to affect their votes in the coming elections. Only 41% cited unemployment as a very likely influence on their votes. Which is also a bit odd considering that only 20% said they expect to retire before they reach 65 years of age and 26% say that they plan to work as long as they can.

Paul Ausick