Is Lack of Retirement Planning Keeping you Up at Night?

Published on August 1, 2017

The 2017 Retirement Confidence Survey (RCS)* by EBRI and Greenwald & Associates revealed that many Americans are stressed out about their retirement but are not doing much to prepare for it, in spite of their discomfort. The survey also reported that the stressed folks have lower confidence levels regarding retirement readiness and feel less financially secure. Thirty percent of workers surveyed said they are mentally or emotionally stressed about preparing for retirement and another 30 percent said they worry about personal finances while they are at work.

That is a lot of stress, and it need not be experienced.

Interestingly, around half of all workers said that retirement planning, financial planning or healthcare planning would help them be more productive at work. In spite of recognizing the need for planning ahead, they are not taking these critical steps. That said, a healthy percentage of respondents are doing something about it.

• Sixty-one percent have saved for retirement.
• Forty-one percent have tried to determine how much money they’ll need when they retire.
• Thirty-eight percent estimated how much Social Security they’ll receive.

Among retirees, many more of that group reported confidence in having enough money to afford a comfortable retirement—almost 80 percent of retirees report feeling either very or somewhat confident.

Again, workers are not feeling as sunny about their golden years; 60 percent report that they feel either very or somewhat confident. According to Craig Copeland, EBRI senior research associate and co-author of the report, “… many workers are worried about retirement issues and their personal finances more broadly. The key factors are debt, lack of a retirement plan at work, and low savings.”

Among the major findings of the survey were that workers who have a retirement plan of some kind (workplace defined contribution or benefit plan or an IRA) saved more than those without one or feel less stressed about preparing for retirement; and workers are concerned about being able to afford health care in retirement.

You know what we think: They’d sleep better by taking control of their future with a self-directed retirement plan.

While self-direction is not for everyone, it can be a real retirement savings boost for certain savvy investors who are comfortable making their own investment decisions. Individuals may include many alternative assets not usually allowed in typical retirement plans, and therefore have more ways to build a more diverse retirement portfolio through self-direction, with nontraditional investments they already know and understand. All types of retirement plans can be self-directed, even employer defined benefit or defined contribution plans, such as 401(k)s, if the employer allows it.

Self-directed investors dream of including real estate, commodities, precious metals, unsecured and secured loans and much, much more in their retirement plans … and enjoy the same tax advantages of regular plans.

Are you staying up at night worrying about your nest egg? Why not take control of your future instead? Read up about various aspects of self-direction in our free white papers, check out our Starter Kits, or contact Next Generation for answers to your questions about this retirement wealth-building strategy. Our helpful professionals are here for you at 888.857-8058 or Info@NextGenerationTrust.com.

*The survey was conducted from Jan. 6, 2017, to Jan. 13, 2017, through online interviews with 1,671 individuals ages 25 and older in the United States.