While saving for retirement is the top financial priority for 88 percent of Americans, a new survey from global financial company Prudential Financial Group shows a disconnect between how people are saving for retirement and how they feel about their retirement readiness.
By the numbers: Over half of employees surveyed (56 percent) believe they should have at least 30 times their annual salary saved by age 65 to live comfortably in retirement when ten times may be sufficient.
- Additionally, 54 percent think they can safely withdraw ten percent or more of their retirement savings annually without outliving their nest eggs when the general rule is four to six percent.
Why it matters: The disconnect could stem from misconceptions around savings benchmarks and planning for income in retirement, says Prudential, which can be corrected with proper education and guidance.
The research shows that 78 percent of people who are not saving for retirement plan to do so in the future, but at the moment they say their expenses are too high, their income is too low, and they’re more focused on paying off debt.
