Survey Shows Many Will Delay Retirement Due to Savings Shortfall
CHICAGO, IL, January 12, 2012 -- Adequate retirement savings has become an issue of significant concern to members of every income bracket. It should come as no surprise that according to a recent BMO Harris survey, the majority of U.S. residents are not confident in their ability to save for their ideal retirement lifestyle (57%). Approximately half of U.S. residents (52%) say they have/will or anticipate maybe having to delay their retirement and/or work part-time during retirement due to a shortage of retirement savings
"This is a critical wake-up call to everyone, no matter what your age," said Mike Miroballi, President and Chief Operating Officer, BMO Harris Financial Advisors. "Our best advice, start now! Get smart about planning and saving for retirement, and get educated about the many strategies and tools available to help maximize your savings."
Mr. Miroballi provides the following tips to guide you as you review or initiate your retirement planning:
Meet with a professional: A financial advisor can provide the guidance you need to learn about the retirement planning process and assist you in creating a realistic retirement plan. You just might be surprised at some of the opportunities available to help build your nest egg.
Start Early: We can't say it enough. Start saving at an early age. Doing so gives you the advantage of compound interest, your money will be working for you every single day. Just ask your parents, they learned this lesson the hard way.
It's never too late: Don't be discouraged if you haven't been saving for retirement. Instead of giving up, like many people do, start now. Contact a financial planner who can help you develop a plan for the best retirement that you can have.
Take advantage of your company 401k: There are many advantages to 401k plans. Don't miss out on any of them. Although rare these days, some companies still offer to match your contributions (guidelines will vary by company). If there is no match, you still benefit because whatever you put into your 401k plan is tax-deferred. Don't forget that no matter how long or short your career at the company, you can take your 401k contributions with you or roll it over into other retirement vehicles.
Consider a Roth IRA: A Roth IRA is a special type of retirement plan under U.S. law that is generally not taxed, provided certain conditions are met. This plan is different from other retirement plans because the tax break is granted on money withdrawn from the plan during retirement, rather than for money placed into the plan.
Commit to saving, even if you start small: Ben Franklin said it best, "A penny saved, is a penny earned."
Parents, educate your children: So many of us are learning the retirement lesson, save early and save often, the hard way. Please be sure to share this knowledge with your children, and guide them to make saving an important part of their financial lives.
About the Survey
The online survey was conducted by Leger Marketing in all regions of the United States with a representative sample of 1,032 adults, between November 3 and November 8, 2011. Final data was weighted by age, gender, and region in order to obtain a representative sample of the U.S. population. A probabilistic sample of 1,032 respondents would yield a margin of error of +/- 3.1%, 19 times out of 20.
BMO Harris Financial Advisors
BMO Harris Financial Advisors, Inc., member FINRA/SIPC, is an SEC-registered investment adviser and full-service brokerage, offering securities, investment advisory services, and insurance products to meet the needs of individual investor clients. With a focus on financial planning, BMO Harris Financial Advisors specializes in helping clients develop and implement personalized plans for long-term financial goals such as a financially successful retirement. BMO Harris Financial Advisors is an affiliate of BMO Harris Bank N.A. and a part of BMO Financial Group.
About Harris Private Bank
Harris Private Bank offers a comprehensive range of wealth management services that include investment advisory, trust, banking and financial planning to meet the financial needs of high net worth clients. Through integrated teams of experienced financial professionals, Harris Private Bank helps its clients realize their financial and lifestyle goals with solutions that are custom tailored and delivered with the highest level of personalized service. Harris Private Bank is a member of the Harris family of wealth management services.
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