Thursday, February 24, 2005

Americans Ill-Prepared to Generate a Retirement "Paycheck"

A new study released today by Prudential Retirement finds Americans aged 55-64 overwhelmingly agree that having a guaranteed stream of income during retirement is their top goal, but the vast majority do not know how to convert their retirement savings into a regular retirement "paycheck," focusing instead on simply saving as much as they can. According to the Prudential Financial’s Fourth Annual Workplace Report on Retirement Planning, "How Prepared Are America’s Older Workers to Generate a Retirement 'Paycheck'?", older workers are actively saving for retirement, but few are aware of the income distribution options currently available. According to John Kim, president,
Prudential Retirement:
Even those who are conscientious savers and investors, including Baby Boomers now aged 55-58, aren't prepared to convert their retirement savings into a predictable retirement paycheck that they can’t outlive. . . . We believe our survey should be a 'wake-up call' to employers, to retirement-plan providers and to the nation as a whole that those nearing retirement need help in managing the payout phase of retirement, especially in light of current discussions on Social Security.
Source: News Release Prudential Financial, Inc. (February 23, 2005)

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