MIDDLE-INCOME AMERICANS MAKING WRONG ASSUMPTIONS ABOUT PROFESSIONAL RETIREMENT ADVICE, STUDY SAYS
Saturday, July 2, 2011
CHICAGO (February 7, 2011) - Many
middle-income Americans not utilizing professional retirement
advice mistakenly assume they can plan on their own, don't have
enough assets to warrant an advisor, or can't afford to pay an
advisor's fees, a new study released by the Bankers Life and
Casualty Company Center for a Secure Retirement (CSR) reveals.
The CSR's Middle-Income Retirement Preparedness Study found
that, of the 54 percent of survey respondents that aren't receiving
professional guidance, 47 percent of the respondents said that they
could plan for retirement on their own, without the help of an
advisor, even though they feel that the tasks associated with
retirement planning are complex and overwhelming.
"Many people set aside too little time for planning," said Scott
Perry, president of Bankers Life and Casualty Company, a national
life and health insurer. "The study found that while those who
worked without the help of an advisor enjoy planning on their own,
63 percent devote less than one hour a month to retirement planning
and over 36 percent spend no time at all."
Two-fifths of middle-income Americans without an advisor didn't
think that they had enough assets to warrant professional help, but
they were uncertain as to how much was "enough," and 20 percent
said that they didn't know the minimum amount required. The
remaining respondents felt that, on average, at least $200,000 in
assets was required to secure an advisor's services.
In reality, 10 out of 10 national financial and insurance firms
contacted by the CSR indicated that they would discuss retirement
planning with anyone having as little as $2,500 or less.
Misunderstandings were also found when it came to the
accessibility and cost of professional advice. Twenty-three percent
of respondents felt they wouldn't be able to afford an advisor's
services, but 32 percent of the group didn't know how much the
services cost. The study notes that many products and services
exist for people with virtually any level of income and assets that
can make their income last, protect their savings and help them
feel more secure in retirement.
"It's these misconceptions that are preventing people from
getting the retirement guidance they may need," said Perry. "We
encourage everyone approaching retirement to put careful thought
into their preparations, whether it's spending the time necessary
to thoroughly research on their own or working with a trusted
advisor to determine a plan that fits their specific needs and
gives them a high level of comfort when thinking about their
future."
Methodology
The Bankers Life and Casualty Company Center for a Secure
Retirement Middle-Income Retirement Preparedness Study was
conducted in August of 2010 by the independent research firm The
Blackstone Group. The complete report may be viewed at www.CenterForASecureRetirement.com
About the Center for a Secure
Retirement
The Bankers Life and Casualty Company Center for a Secure
Retirement is the company's research and consumer education
organization. Its studies and consumer awareness campaigns provide
insight and practical advice for how everyday Americans can achieve
financial security duringretirement.
Established in 1879 in Chicago,
Bankers Life and Casualty Company focuses on the insurance needs of
the retirement market. The nationwide company, a subsidiary of CNO
Financial Group, Inc., offers a broad portfolio of life and health
insurance retirement products designed especially for seniors.
Visit us online at www.bankers.com.
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