Business

America's retirement challenge

Ten thousand Americans will be retiring every day for the next 20 years, yet the following trends show many people aren't ready for retirement:

-- Most Americans do not have good knowledge of how to save for retirement. According to a recent Prudential Retirement survey, only 41 percent of men and 27 percent of women say they have a "very good or excellent" knowledge of saving for retirement. Almost half reported being ill-equipped for making wise financial decisions; 19 percent consider themselves beginners; and 28 percent acknowledge they need to catch up in many areas. Financial literacy is lowest among millennials, women and the less affluent.

-- Many people have nothing saved for retirement. More than one person in three, or 36 percent of the population, has nothing saved for retirement, and 62 percent have less than 20 percent of what they think they will need.

-- Saving for retirement isn't the priority for many Americans. About 15 percent of adults admit to procrastinating on retirement planning, saying they aren't concerned with the issue and that they believe they have more than enough time to save. Thirty-five percent feel a sense of hopelessness regarding their retirement and 25 percent feel pessimistic, believing they will never have as much as they'll need.

-- Many people (34 percent) are worried an illness or disability will disrupt their retirement success. The greatest perceived threat is rising health-care costs (52 percent). People also worry about changes to Social Security (48 percent), inflation (39 percent), and having to care for loved ones (20 percent).

-- Prudential Retirement

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