A recent study has revealed that majority of Americans think retirement benefits savings are important. The same study highlights that Americans want to have a plan for meeting the financial goals but many of them don’t have any at the moment. People are also very worried about their financial future. The study categorized the people based on their financial confidence and listed the behavioral patterns of the people who were more financially confident. Experts believe that Americans need to develop their financial literacy in order to be more confident about their financial future.
Study says Majority of Americans Think Retirement Benefits Savings are Important
The study that says a majority of Americans think retirement benefits savings are important was conducted by the Guardian Life Insurance Company of America. It mentions that about 60 percent of Americans think that having at least one source of guaranteed income in retirement except social security is vital. The aim of the study was to map the emotional and financial confidence of Americans.
A Shocking Fact
The study that says a majority of Americans think retirement benefits savings are important also highlighted that less than one in four respondents were feeling very confident in any aspect of their finances related to retirement. It also uncovered the fact that 52 percent of respondents believe that building savings is a big priority for them but more than one-thirds respondents also said that they were not living within their means.
Need for a Solid Plan
About 47 percent of the respondents admitted that having a solid and long term plan for achievement of all the financial goals was vital in the study that says a majority of Americans think retirement benefits savings are important. But unfortunately, 81 percent felt that they did not have such a solid plan.
The study that reveals a majority of Americans think retirement benefits savings are important also highlighted that 78 percent of the American families are worried or even stressed about their financial future. This result was common for all respondents regardless of age, income, gender or other demographics.
On the basis of the aforesaid and some other findings, Guardian crafted a Financial Confidence Quiz. The assessment placed the participants into pre-defined financial confidence segments on the basis of their answers to all the finance related questions. Some tips on how to change behaviors in order to improve their future and take hold of the financial lives were also offered.
The segments created as the result of the survey that exposes a majority of Americans think retirement benefits savings are important mentioned here. The first segment was of the day-to-day decision makers. It included a lot of women and people of Gen X. People in this segment were stressed and often struggled with their finances. Another segment was of the ambitious spenders. It mostly included small business owners who were stressed but coping.
Next comes the segment of retirement realists. In this segment, people who were fearful about their future and had an above-average emphasis on savings as well as had adequate retirement income were categorized. The final segment was of the confident planners who had a highly positive work and life balance. People in this segment placed an above-average emphasis on making wise investment decisions and retiring with a secure income which often leads to a high degree of overall satisfaction in life as compared to people in the other segments.
The Behavioral Traits of Confident Planners
Post the categorization of people into various segments, Guardian obtained a pattern exhibited by the Confident Planners who comprised of about 21 percent of all the respondents. The people in this category credited their success to four specific behavioral traits. The first one is education as they are highly educated and financially competent. Another is planning as these people mostly live within their means and have a written financial plan with clearly mentioned objectives and specific details.
The confident planners also own products that are in line with their financial goals that include protection and growth solutions. The final trait of the confident planners is that they either use a financial planning tool or work closely with an adviser.
Matthew Bryan, who serves as the Assistant Vice President at Guardian shared his opinion on the results of the survey that discovered a majority of Americans think retirement benefits savings are important. He thinks that Americans need to be more financially literate, have a detailed plan and they need to own the right financial products in order to offer financial protection to their families. He also added that advisors can assist by identifying the gaps between the current behaviors of the clients and creating plans that address those gaps.
The respondents of the survey that says a majority of Americans think retirement benefits savings are important were about 5,000 Americans who were more than 18 years of age and were employed part-time or full-time. They were not retired and had household incomes of at least $50,000. The survey was conducted online.