Layoffs, bankruptcies and foreclosures over the last three years have clouded the financial future for millions of Americans, and a new poll shows concern for the future has never been higher.
The Principal Financial Well-Being Index shows 67 percent of retirees are now concerned about their long-term financial future. That's up from 43 percent in the last quarter. Concern among those still in the workforce rose to 68 percent from 63 percent in the previous quarter.
And Americans are not only worried about the long-term. Short-term concerns also grew in the third quarter with 28 percent of workers and 36 percent of retirees reporting they are pessimistic regarding the economic outlook for the rest of 2011, up from 20 percent for workers and 21 percent for retirees last quarter.
Looking beyond 2011, 58 percent of retirees and 46 percent of workers say the economy will worsen in 2012.
Doom, gloom
“Continued economic challenges have given many pause, signaling we may be a long way from home on the road to recovery,” said Luke Vandermillen, vice president of retirement and investor services at The Principal. “While many Americans are feeling doom and gloom over the present economy, this is a wake-up call. Those who take steps to save for and protect their financial future may be better prepared to achieve their long-term financial dreams.”
The poll, conducted by Harris Interactive, found that 42 percent of workers report saving one to eight percent of their income, including any employer match. The poll found 30 percent reporting they put away nine percent or more of their income.
“The disconnect in what people think they should be saving versus what they are actually saving indicates more Americans need to get on track, develop a plan and seek help to start preparing for their retirement,” Vandermillen said. “In order to help ensure sufficient retirement income, we believe most retirement plan participants should be saving 11-15 percent of their pay–including any employer match–throughout an entire working career.”
