55% of Americans Don't Know Cost of Retirement

Most Americans have no idea how much they will need to live on once they retire according to the Quicken Fiscal Literacy Survey. More than 35% of all respondents did not know just how much they needed in order to retire, a one-percent increase from the 2000 Survey. The survey indicates that around 30% of Americans could only sustain themselves economically for a few months in the event of job loss; that same number of Americans don't even contribute to a pre-tax retirement program.

"It may be reasonable for 27% of people under age 25 to not know how much money they will need for retirement, but the survey shows that the percentage skyrockets with age. With retirement just around the corner, 55% of those 65 and over still do know how much they will need to maintain their lifestyle after they stop working," said Baie Netzer, investments editor for Quicken.com. "Today's economic volatility should be a wake up call to consumers that they need to be more diligent with their savings and more efficient with their spending."

Nearly 30% of full-time employees do not contribute to a qualified, tax-deferred retirement savings plan, in essence forfeiting the opportunity to reduce their tax burden and ignoring free money from potential employer contributions. Despite having longer life expectancies, a lower percentage of women contribute to these plans than do men.

Interestingly, the older survey participants had more uncertainty about how much it will take to fund retirement than the younger participants.

View the full survey results!

You may like these other stories...

Regulators struggle with conflicts in credit ratings and auditsThe Public Company Accounting Oversight Board (PCAOB), which was created by the Sarbanes-Oxley Act in 2002, released its third annual report on audits of...
Regulatory compliance, risk management and cost-cutting are the big heartburn issues for finance execs in the C-suite. Yet financial planning and analysis—a key antacid—is insufficient.That's just one of the...
A review of Financial Accounting Standards Board (FASB) guidance on share-based payment transactions found that the 2004 standard achieves its purpose and provides useful information to investors and other users of financial...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.