Now there’s a term that’s thrown around a lot in our business.
But what does it really mean?
An industry survey of over 2,000 consumers asked what the term means to them.
Here’s what they said:
23% “Having financial freedom”
24% “Living comfortably”
16% “Peace of mind”
The new sandwich generation?
Interestingly, of all age groups, Gen X consumers (those age 33-48) were most concerned about having enough money in retirement.
There may be a reason for that.
Gen X workers are more likely than younger Gen Y counterparts to realize what they need for retirement, and less likely than older Boomers to benefit from retirement pensions.
Because of their age, “they also may be managing multiple financial demands like saving for a child’s education or helping older parents,” says Alison Salka, corporate vice president and director of LIMRA Retirement Research, who conducted the survey.
Younger Gen Y consumers (age 18-32) and older Boomers (age 49-68) were more confident about their abilities to weather retirement.
However, the survey revealed that overall, fewer than 20 percent of all Americans are “very confident” they are on track for a secure retirement.
Steps to readiness
Workers surveyed spelled out the steps they have taken to get ready for retirement:
- contributing to an employer-sponsored retirement savings plan
- calculating their retirement income
- discussing planning with a professional
- determining what their retirement expenses will be
Not surprisingly, baby boomers, especially those over age 55, have made more progress on their preparations than younger workers.
Ready to get back on track?
For many people, 2014 will be the year to get back on track. Their incomes have seen a boost, investment accounts have rebounded, the kids may be closer to standing on their own two feet, and they’ve got some breathing room in their budget.
So when you have some free time over this holiday season, ask yourself if you are where you want to be in terms of your own retirement security, and what financial “peace of mind” really means to you.
Then take advantage of the New Year to make the important decisions you need to make sure a bright financial future is truly within your grasp.