Approximately 40 percent of plan participants are not saving enough for retirement, and are concerned about their level of debt.
Participants in defined contribution plans are obviously the sort to think about the future. Today, those plan participants see the future as rosy.
Spectrem’s new defined contribution plan study, Financial Attitudes and Concerns of Retirement Plan Participants, asked DC participants what they thought about their own financial future. A majority, but not an overwhelming one, said things are looking up.
Seventy-two percent of plan participants say they expect their personal financial situation to be stronger one year from now than at present. Sixty-five percent say their current financial situation is better than it was one year ago.
The segment with the most positive attitude toward their current situation are those DC participants under the age of 36. Seventy-three percent say their financial situation is improved this year over last. Only 54 percent of those participants between the ages of 36-49 say things have improved over the past year.
There is even greater optimism about the future, especially among the young plan participants. Eighty-four percent of participants under the age of 36 say they expect their financial situation to improve over the next year. That optimism drops as a participant’s age drops, down to 52 percent for those participants over the age of 64.
Budget concerns are more middle of the road. Only 52 percent of plan participants expect to have sufficient income upon which to live comfortably in retirement. Only 45 percent of participants between the ages of 50-64 feel they are financially prepared for retirement.
Forty-one percent of participants say they are not saving enough money to meet their financial goals, including 49 percent of females and 48 percent of those between the ages of 36-49.
Almost 40 percent say they are concerned about the amount of debt their household has, including 51 percent of those with between $50,000 and $100,000 in their retirement plans.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.