Recession leaves many without nest egg

Posted on Monday, February 7, 2011

The Great Recession has taken a huge bite out of many Americans’ retirement savings. In fact, a new Harris Poll finds that 34 percent of all Americans have no retirement savings, and 27 percent have no personal savings.
That’s worse than a year-and-a-half ago, when 30 percent had no retirement nest egg and 22 percent had no personal savings set aside.
The report comes on the heels of a recent CareerBuilder survey that found older workers were feeling better about retirement.
Generationally speaking, 25 percent of baby boomers (ages 46-64) have no retirement, while 22 percent of those 65 and older have no money in the bank to live off of. Thirty-two percent of Generation Xers (ages 34-45) have no personal savings.
For baby boomers and those 65 and older, their personal savings are mostly invested in stocks or mutual funds.
"Current economic conditions seem to be driving somewhat less risky investment behavior by Gen Xers, which goes against the grain of traditional investment advice," said Barbara Bertner, VP of financial services research for Harris Interactive, in a news release. "A combination of trust and education would likely bring these consumers back into alignment with traditional investment thinking."
The Harris Poll included 2,151 adults surveyed online, Nov. 8-15.
Meanwhile, a recently released Merrill Lynch survey of affluent Miamians found more than 59 percent plan to continue working in retirement as a means to stay active. And, when asked what word best described retirement, 10 percent said “uncertainty.”
On the other hand, 31 percent said “freedom” and 18 percent said “opportunity.”
And, when it comes to retirement planning, 83 percent of affluent Miamians recommend starting no later than in your 30s, while 53 percent recommended in your 20s.
South Florida Business Journal

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