“A distressing gap exists between the public’s expectations for retirement and the reality," said Carl George, CPA, Chair of the AICPA’s National CPA Financial Literacy Commission and CEO of Clifton Gunderson LLP. "Moreover, too many Americans think they can rely on the Social Security and pension safety net to carry them through. The fact is, Americans must realize they have to take responsibility today for planning and saving for their retirement. Otherwise, they may find themselves working far longer than they anticipated or at a lower standard of living.”The survey also shows that 39% of survey respondents believe as little as $500,000 will be sufficient to see them through their retirement. However, George noted that when spread out over the course of 30 years, that amount becomes $16,000 a year and would have to take into account uninsured medical costs and other expenses, such as the possibility of assisted living.
Source: News Release American Institute of Certified Public Accountants (April 4, 2006)