The Accenture Global Retirement Services Survey has uncovered a disconnect between people’s retirement anxiety and retirement savings. Today, we’re taking a closer look at two key factors that could be driving this behavior.
A financial gap
Access to funds was the top reason, by far, keeping consumers from investing in private retirement products. Although survey respondents said they would be willing to invest, on average, 17.2 percent of their pretax monthly income for retirement, 57 percent are “struggling to save any money at the moment.”
A knowledge gap
In addition, our survey found that many lack the information and financial literacy they need to prepare for retirement. More specifically:
- 53 percent do not understand the different pension options available to them.
- 67 percent do not know how much they need to save to maintain their standard of living.
- 27 percent do not know how to set up a personal retirement savings plan.
- 25 percent do not understand the benefits of private retirement products.
Putting affordability and financial literacy to one side for the moment, whom are consumers most likely to turn to for retirement advice and products? Visit this blog next week to find out how life insurance companies stack up.
In fact, every Thursday we will be adding interesting insights from the Accenture Global Retirement Services Survey. Read other posts in the series: