Putnam Survey: Investors Struggling to Save for Retirement
May 6, 2010
Americans are having a hard time saving.
In a recent survey of 1,000 adults fielded by Putnam Investments in April, only 14% of respondents said they plan to fully fund their IRAs in 2010, compared with 23% who did fully fund their IRA in 2009.
That’s a significant decline.
Further, more than half of those who didn’t fund their IRA for 2009 said they either lacked the cash to invest or preferred to keep cash available for other reasons. Another 25% said they were worried about market risk.
While I believe the Great Recession is over and the worst is behind us, clearly the extensive damage done by the 2008 market crash and recession continues to weigh on investors.
The irony is that people recognize the need to save. Our survey found that 62% said they think their savings are unlikely to provide them with a sizeable retirement nest egg.
But 58% of respondents said they are not saving more overall this year compared with last year.
Indeed, one of the biggest challenges for many investors today is getting back on track.
Whether it’s the fear of what direction the markets will take or the uncertainty about the best strategy to choose, investors can find solutions to these obstacles by seeking professional, financial advice.
Meeting with an advisor and reassessing goals could be a valuable first step in regaining your financial footing.
The survey findings, which were conducted for and paid for by Putnam Investments, are based on a representative nationwide sample of 1,001 U.S. adults, age 22-plus, polled online April 2–7, 2010, by Insight Express.
Tags: ira, putnam survey, retirement savings, savings rate