ING Survey Says Americans Not Planning Their Retirement Paycheck
PRNewswire
Sep 19, 2002
75%(1) of Americans Do Not Understand the Importance Of
Planning Their Retirement Paycheck
ING Launches Business to Help Individuals Address Retirement Readiness
ATLANTA, Sept. 19 /PRNewswire/ -- A majority of Americans are unprepared for retirement, even though they may have done a good job of accumulating assets, according to survey results released today by ING's U.S. financial services. And, successfully planning and preparing for a comfortable retirement has become a sensitive issue for many Americans, given challenging equity markets and weakened economies. This sensitivity is likely heightened for those who are quickly approaching the retirement phase of their lives.
69%(2) of 50-70 Year-Olds Do Not Have a Plan for Their Retirement Paycheck
According to ING's research, approximately 75 percent(1) of respondents either do not understand, or haven't considered, how to successfully plan for the withdrawal of their retirement savings -- and maximize the options available to them to best meet their personal needs. And, even more alarming, ING's research reveals that most pre- and post-retirees (69 percent(2) of 50 to 70 year-old Americans) have no plan in place for their 'retirement paycheck.'
"Americans have become conditioned to think that by building a retirement nest egg they are financially prepared to retire, but there's more -- a comprehensive retirement plan does not end there," said Tom McInerney, chief executive officer for ING's U.S financial services. "The retirement paycheck is a monumental issue because according to our research, 86 percent(1) of Americans expect to have a comfortable retirement."
McInerney emphasized that individuals need to plan how to best convert their nest egg into a long-term income stream they won't outlive. The consequences of careless decisions stemming from inadequate planning can undermine years of successful scrimping and saving.
Baby Boomers Need A Wake-Up Call on Retirement Readiness
McInerney continued, "Roughly a decade ago, Baby Boomers heard the wake-up call about the need to take personal responsibility to accumulate savings for retirement. However, if Boomers think that saving is all they need to do to retire ready, then it's time for another wake-up call. Individuals also need to take responsibility for planning their retirement paycheck."
ING Introduces ING's Financial Horizons Advisory Program Dedicated to Helping Individuals Address an Overlooked Part of Retirement Readiness
ING also announced today that it has launched a business effort focused on delivering retirement counsel and advice to individual consumers who recognize the need to retire ready. Industry data shows that there are approximately 14 million households in the U.S. with between $100,000 and $1 million in investable assets(3) with many of those households nearing retirement and looking for a helping hand.
"The good news is that, unlike the accumulation phase of an individual's retirement planning, creating a plan for a retirement paycheck can be done quickly and effectively with the help of experienced retirement advisors," said Shaun Mathews, president of ING's Financial Horizons, a division of ING Financial Advisers, LLC. "The ultimate goal of ING's Financial Horizons is to help individuals with an important and overlooked part of retirement readiness -- and we provide our services for the every day investor."
Insufficient planning and consideration for the impact of taxes, accessibility, and diminished growth potential can significantly compromise an individual's retirement experience. According to Mathews, "Mistakes can be costly and painful -- consider a person who retires at 62, transfers $250,000 to a bank savings account in a lump sum from their 401(k) plan and unwittingly suffers a major tax penalty -- and loses a sizeable portion of their life's savings. It likely took that person many years to accumulate those assets, but they would likely lose more than a quarter of their savings because of one uninformed decision. Americans need to plan and get the help they need to prepare for their retirement readiness."
ING's Financial Horizons' Value-Added Services include: a Retirement Readiness Checkup, a Retirement Readiness Analysis and a Retirement Readiness Action Plan. ING's Financial Horizons Advisory Program provides objective advice and choices from a broad range of investment solutions, including non- ING products. The needs-based planning and coaching is intended to provide advice that's well matched to an individual's particular situation -- and will remain active before and after one's retirement.
A consumer Retirement Readiness calculator/web-based tool can be accessed at 'http://www.ing-usa.com/RetireReady'. ING's Financial Horizons' services are fee- based, rather than commission-based, and the Retirement Readiness Checkup is offered to individuals at no cost or obligation.
ING's Survey Also Says Americans Believe Advice is Essential To Live a Satsifactory/Comfortable Retirement
According to the survey, 52 percent(1) of Americans believe professional advice is a necessity in order to achieve the satisfactory/comfortable retirement they want. And, of the 48 percent(1) who have actually sought professional investment advice, most (82 percent(1)) rate the advice as good or excellent. Mathews views this as a vote of confidence, "Professional advice is a valuable way for an individual to maximize the options available and avoid costly, painful mistakes -- and we are striving to make our services readily accessible and appealing."
About ING
ING's U.S. financial services operations (http://www.ing-usa.com/ ) offer a comprehensive array of products and services, including life insurance; fixed and variable annuities; retirement programs; employee benefits; and mutual funds, through a variety of distribution channels. ING U.S. Financial Services is part of Amsterdam-based ING Groep N.V., one of the largest integrated financial services organizations in the world.
About the Survey
ING commissioned KRC Research to conduct a nationwide survey of 800 employed or retired individuals age 30 and above, and of 200 adults between the ages of 50 and 70 who have investable assets between $100,000 and $1,000,000. The survey was conducted in June 2002. The sampling error associated with the N=800 sample is +3.5 percentage points at the 95% confidence level, while the sampling error associated with the N=200 sample is +6.9 percentage points at the 95% confidence level.
Key survey findings, a consumer Retirement Readiness calculator/tool, and other background information about ING can be found at 'http://www.ing-usa.com/RetireReady'.
Media Inquiries Contact ING'S US Financial Services' External Communications:
Cindy Schaus Dana Ripley Tel 515.698.7607 Tel 770.980.3317 Cell 641.780.3954 Cell 404.202.6679 'cindy.schaus@ing-dm.com' 'dana.ripley@ing-fsi-na.com' Vice President - ING USFS Director - ING USFS Phil Margolis Tel 860.273.0153 Cell 860.805.7642 'margolisp@ing-afs.com' Director - ING USFS (1) N=800 adults, 30-70, employed or retired (2) N=200 adults, 50-70, with investable assets of $100,000 to $1,000,000 (3) SRI Macro Monitor, 2001
SOURCE: ING Americas
CONTACT: Cindy Schaus, Vice President, +1-515-698-7607, or cell,
+1-641-780-3954, or cindy.schaus@ing-dm.com , or Dana Ripley, Director,
+1-770-980-3317, or cell, +1-404-202-6679, or dana.ripley@ing-fsi-na.com , or
Phil Margolis, Director, +1-860-273-0153, or cell, +1-860-805-7642, or
margolisp@ing-afs.com, all of ING USFS
Web site: http://www.ing-usa.com/