A recent global survey by AXA Equitable found that American workers are confident about their finances in retirement, but they don't know much about it. For example, 60% of workers think their retirement income will be enough, but only 1/5 of them know how much it will be.
The confidence of workers may come from seeing their parents do well after they retire:
On average, U.S. retirees get $4,243 a month in net income, which includes things like Social Security, company pensions, personal assets and savings, and so on. However, the median net income is only $463 a month.
98 percent of U.S. retirees are happy with their quality of life and say they have everything they need.
But now that people are less interested in Social Security and pensions (about 90% of people think the Social Security programme is in trouble or crisis), workers are getting a wake-up call to start planning for their retirement. About 65% of workers know that they will have to rely on their own savings to get them through retirement.
Americans are the least likely of all respondents around the world to depend on government-run retirement savings programmes or hold the government responsible for their retirement income.
AXA's director of market research, Ken Gelman, said, "Not only do Americans have to pay for their own retirement, but they are also living longer and realising that they may need money to last them for more than 30 years after they retire." "Because of this, they are very serious about saving for retirement. They are starting early and talking to trusted financial advisors."
Because of good advice, Americans are able to build retirement portfolios with a wide range of investments.
When asked how they will get money in retirement, about two-thirds of respondents, both working and retired, said they have IRAs, 401(k)s, investment funds, and company pensions, among other things.
But people in the U.S. are careful with the money that should last a lifetime. 78% of workers prefer investments with a small return on investment and no risk. Even so, Americans are the most likely in the survey to take financial risks.
AXA, which is one of the best at giving financial advice and managing wealth, did the Retirement Scope survey. More than 6,900 working people and retirees in 11 different countries were asked questions.
