How are Nebraskans planning for their retirement? The 20th Annual Retirement Confidence Survey shows that after two years of record setting declines, the situation is starting to stabilize. Dan Houston is the president of the Principal Financial Group and says confidence is improving and people are one again able to contribute to their retirement plan.
“That hit an all time low in 2009 at 13-percent. That has risen to 16 percent. The second bit of data that came out of this year’s survey, now 25-percent, one in 4 plan on working into retirement which could have some implications on new college graduates coming into the market place.”
Houston says the number of people planning ahead is declining.
“The number of individuals in this country saving for retirement go from 65-percent falling back to 60-percent and there is a variety of reasons but most likely economically driven as to why they have chose right now to no longer contribute to their retirement plan.”
Houston says there could be several reasons as to why people are putting less aside.
“Family members helping out family members. Spouses who may have lost their job. You may have a college graduate that needs a little help because they are unable to find a job. So there are a variety of reasons. If we ask the question a year from now if we continue with a modest upward and to the right economic recovery, I have no doubt that the rates will go back to that 65, 70%”
Houston says they do not have a state-by-state breakdown on statistics but it appears that white males are doing the best job at saving for retirement.
“We do know that demographically that the percentage of population that still saves at the highest level is male workers. Female and minority workers actually participate less in qualified retirement plans and save on the average less than their Caucasian counterparts.”
The survey shows that confidence in the government, banks and insurers is very low whereas confidence in employers is much higher.