Chip Castle, a managing Director at Blackrock, recently wrote an article about the the lack of savings by individuals looking to retire. The article, Retirement in 2014: It’s Your Number that Counts, highlights a number of facts that point to the savings shortfall of potential retirees. A few of the facts noted in the article:
- $6.6 trillion: That’s what the Center for Retirement Research has estimated as the gap between what people will need in retirement and what they have saved.
- 20 years: A generation ago, when most of the current retirement system was created, life expectancy at 65 was 5 to 7 years. Today, it’s closer to 20 years, meaning if you retire at age 65, retirements are three times as long.
- 65%: Building on the last point, a couple at age 65 has a 65% chance of one of them reaching their 90th birthday.
- 50%: Only 50% of investors understand how much they will need in retirement, according to BlackRock’s Investor Pulse survey.
The article is a worthwhile read for investors looking to to make a few financial resolutions in the coming year. HORAN's financial planning director also wrote an article, A Retirement Crisis: Sound the Alarm, earlier in the year that also cited the crisis for those seeking to retire. His article provides a link to a survey by Employee Benefit Research Institute noting the lack of confidence of workers in their ability to retire due to insufficient savings.