ING: 5 Ways To Make Retirement Planning a Priority In The New Year
December 30, 2011 by N/A
December 28, 2011
Newswire Association LLC
WINDSOR, Conn./PRNewswire/ –As
Americans begin to make their resolutions for the New Year, new findings from
the ING Retirement Research
Institute suggest that better retirement planning and saving should be high
on the list. According to recent findings, 71 percent of Americans do
not have a formal investment plan to help them reach their retirement goals.
ING U.S. study(1) — Retirement Revealed — also showed that while 75
percent of respondents aged 25 to 69 who are employed full-time with an
annual income of $40,000 or more are contributing
to their workplace retirement plan, nearly half (48 percent) do not feel
prepared for retirement.
consumers today face a number of competing financial priorities. But one thing
they should not lose sight of is the importance of properly preparing for their
retirement,” said Maliz Beams, CEO of ING
U.S. Retirement. “The good news is that more people are becoming aware of
what it takes to reach their goals. Our mission is to continue raising
awareness, while helping them plan and save so they retire with the dignity and
financial security they deserve.”
the study findings, ING U.S. has identified several simple but important
savings resolutions that can keep Americans on track to meet future financial
Resolution #1: Make Saving a Personal Responsibility
are responsible for retirement more than ever before. The responsibility of
planning and saving involves not only building up a sufficient nest egg, but
also making sure those savings last a lifetime while protecting against
unexpected financial pitfalls. It also means developing a comprehensive
approach—creating a financial plan, getting advice from a trusted professional
and utilizing a variety of savings strategies both in and out of the workplace.
Resolution #2: Enroll in a Workplace Plan
in a workplace retirement plan is often the cornerstone of most successful
retirement programs and one of the first and best places to start saving. These
plans offer a number of benefits, including the convenience of having
investments directly deducted from a paycheck; tax-deferred growth on savings;
company matching, when available and choice and control over how to invest.
According to ING’s study, respondents who currently contribute to a workplace
plan have saved an average of $69,000 in those
plans, with 72 percent currently receiving the full employer match.
Resolution #3: Gain Greater Control Over Assets
advantage of multiple savings opportunities when possible. According to the
study, more than half of the respondents (58 percent) are saving outside
a workplace retirement plan in such places as an individual retirement account
(IRA), Roth IRA, traditional bank account, CD or brokerage account, with an
average of $46,000 saved. At the same time, make
sure to inventory and control all assets so they are being maximized. Having
“idle” or “orphaned” retirement savings accounts is not an
efficient way to achieve financial goals. Evaluate rollover and IRA
consolidation options, which can generally help to lower custodian fees,
enhance portfolio management, reduce paperwork and improve beneficiary
Resolution #4: Calculate Retirement Needs and Evaluate
choosing to participate in a workplace plan or opening up an IRA, the most
important decision an investor makes is setting their contribution level.
However, many people lack a clear understanding of contribution rates and how
even small changes can produce significant results over time, impacting whether
or not retirement goals are reached.
Only 43 percent of those surveyed calculated how much money they will
need in retirement to continue their current lifestyle. Understanding the
projected savings that different contribution levels can produce, and
considering things like tax impact, compounding and the effects of employer
matches can make a huge difference in retirement preparation.
Resolution #5: Get Education, Information and
is power, and it can be critical for achieving a positive outcome in
retirement. Support, guidance and information can come in many forms—in person,
over the phone, through “self-help” online
tools or through an employer. According to those surveyed, almost half (47
percent) expect their employer to do more to educate them about retirement
options. Still, others would like additional guidance beyond what their
employer might offer. In fact, those in the survey valued face-to-face
communication with a financial professional as the most vital for getting
information about their retirement plan and other employee benefits. Yet only 28
percent are currently working with a financial professional, which
indicates that this type of help may be something to consider for the New Year.
About ING U.S.
ING U.S. includes the U.S insurance, retirement and asset management businesses
of Dutch-based ING Groep N.V. In the U.S., the ING (NYSE: ING) family of
companies offers a comprehensive array of financial services to retail and
institutional clients, which includes life insurance, retirement plans, mutual
funds, managed accounts, alternative investments, institutional investment
management, annuities, employee benefits and financial planning. ING holds
top-tier rankings in key U.S. markets and serves approximately 15 million
customers across the nation. For more information, visit http://ing.us.
are from an online survey conducted during the period of October
5-13, 2011. Respondents were 4,050 adults (2,026 men and 2,024 women)
between the ages of 25 and 69 who are employed full-time with an annual
household income of $40,000 or greater.
Data were weighted to make the results representative of the U.S. population.