Monetary Plans: Whаt Arе Americans Banking On?
Americans tend to have an optimistic view of retirement - but a recent poll found many people still have a lot of work ahead of them before they can leave their jobs.
For example, 47 percent of survey respondents said their retirement savings were less than 10 to 20 years. These numbers look so promising that you can't plan everything for 30 years. Similarly, all of the respondents of Generation X still hope to rely on pension funds to support their pension funds. The plan may sound plausible, but experts warn that many US retirement plans are in danger of breaking out. In addition, a third of all companies now offer retirement plans.
The survey was sponsored by the American Institute of Certified Public Accountants (AICPA) in an effort to better understand the American public's approach to saving and retirement. The group sponsors a website called 360 Degrees of Financial Literacy (www.360financialliteracy.org) to help people understand financial issues at different stages of life. Here are some additional polling results:
Paying For Retirement
Younger Americans don't plan to rely as heavily on Social Security for retirement as older Americans do. Nearly six in 10 people age 55 and older plan to fund their retirement through Social Security. Only four in 10 (41 percent) of Americans under the age of 55 rely on Social Security to fund their retirement. Instead of relying on Social Security, those under 55 are more likely to rely on their personal savings and investments.
College Costs
About three in 10 Americans have children who plan to go on to college in the next five to 10 years. A quarter of these parents plan to pay for their child's education with personal savings, another quarter intend for their child to get a scholarship to pay for tuition. Surprisingly, only 13 percent of respondents plan to use private student loans and only 12 percent plan to fund their children's education with financial assistance.
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