At time when more Americans than ever are petrified they won't have enough set aside for retirement, a Limra International Inc. survey suggests that peace of mind could be just a phone call away.
The research and consulting firm for the insurance and financial services industry said that while almost two-thirds of all preretiree households — defined as those with members between 55 and 70 — are not working with a financial adviser, more than half (54%) of those who are say they feel they'll be able to afford the retirement lifestyle they desire when the time comes.
Moreover, more than three times as many preretiree respondents who have yet to hire a money professional now admit they feel unprepared for retirement compared with those who have enlisted the services of a financial adviser.
"With so much uncertainty in the economy and in the social programs supporting retired Americans, preretirees face many challenges when preparing for retirement," Marie Rice, director of Limra Retirement Research, said in a May 10 press release. "Our research is clear. Those who use professional financial advisers enjoy the peace of mind that they are making the appropriate decisions to ensure they have a financially secure retirement."
When asked whether they felt confident that they will be able to live the retirement lifestyle they choose, 63% of preretirees not working with an adviser said they most likely would not.
Lack of proper planning and saving has become something of a national epidemic, particularly among the massive pool of Baby Boomers who are either at or nearing traditional retirement age.
In April, a poll conducted by the Associated Press and the LifeGoesStrong.com lifestyle website found that 44% of Americans between 45 and 65 aren't confident they'll have the resources and investments they need to enjoy a relatively comfortable retirement.
Of this group, 57% said one of the main reasons they're panicking is that they lost a significant portion of their retirement assets or net worth during the economic tsunami that pummeled so many investors' portfolios in the middle and latter part of the past decade.
Limra's research estimates that less than half of preretirees have adequately saved for their retirements, and 55% of respondents have less than $100,000 in total household assets and less than half have come to terms with the implications — and likelihood — that they will outlive their nest eggs.
"Retirement planning involves many complicated decisions that should not be done without the knowledge and expertise that a professional financial adviser can provide," Rice said. "Preretirees who use this help to make these critical decisions are more confident that they made the right choices."
