A new Pew Research report reaffirms the declining confidence people have in saving for retirement. In fact, according to the Pew study, levels are lower today than they were in 2009 at the end of the Great Recession. Some 38% of the 2,500+ adults who were surveyed said they were "not too" or "not at all" confident of having enough income and assets for a secure retirement. In contrast to an earlier study, the worry is greater for young and middle-age adults than it is for those closer to retirement age. The full Pew Research report,
More Americans Worry about Financing Retirement, is available on the Pew Research website.
The Vanguard Group has been releasing detailed reports on its client base for over a decade. The 2012 edition of How America Saves finds a growing trend toward participants choosing professionally managed investments. According to Vanguard's data, one third of all participants it services had all of their plan assets "in either a single target-date fund, a single target-risk or traditional balanced fund, or a managed account advisory service." The impact is that it moves responsibility away from the participant and back toward the investment and advice programs selected by the employer. This was a jump from 9% at year-end 2005 to year-end 2011. Average account balances, which had declined dramatically during the 2008 economic downturn, are back at 2007 levels. Plan asset and contribution allocations have moved away slightly from equities. The average number of funds offered remains in the 18-19 range, with the average number used by participants remaining at 3.
The Vanguard website contains the complete report, How America Saves 2012.
The Bureau of Labor Statistics has released its latest update on the degree of access to and participation in retirement plans by private industry workers. As of March 2012, 65% of private industry workers had access and 48% participated. Access and participation are significantly higher for professional and managerial employees as compared to those in the service industries. Similar trends are found for union vs. non-union members, full-time vs. part-time, higher-paid vs. lower-paid, and large companies vs. small companies.The attached chart and its related data are from the BLS website at http://www.bls.gov/opub/ted/2012/ted_20120921.htm
Blog Author - Ken Felsher
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