Wachovia Press Release 2/22/2006
February 22, 2006 INCREASED SOCIAL SECURITY AWARENESS DRIVING MANY CONSUMERS TO PLAN AND SAVE MORE FOR RETIREMENT Wachovia's Retirement Fitness Survey Reveals Link Between Social Security Awareness and Retirement Preparation
CHARLOTTE, N.C. – While many consumers continue to express a great deal of uncertainty and worry about how well they are preparing for retirement, concern over Social Security has led to additional planning, saving and investing for retirement, according to a new Wachovia survey.
Wachovia's annual Retirement Fitness Survey revealed that more than 80% of consumers said Social Security will be important to their own retirement well-being, yet nearly half are not confident that it will be available to them when they retire.
As a result, 51% of consumers say they are making changes to how they prepare for retirement. Those changes include increasing their retirement savings in 401(k) plans and IRAs, planning more precisely, investing in alternate investments like real estate and working with a professional advisor.
“People are realizing more and more that they have to take their retirement well-being into their own hands,” said Bob Reid, president of Wachovia’s Retirement and Investment Products Group, adding that 18% of consumers have lowered their lifestyle expectations in retirement. “The headlines around Social Security issues and pension cutbacks have caused more individuals to look in the mirror and consider their own retirement situations.”
In recent years, the future of Social Security has been a topic of national debate, and several companies have announced plans to freeze their pension plans. In his State of the Union address, President Bush called on Congress to create a commission to examine the full impact of baby boom retirements on Social Security.
Wachovia's annual Retirement Fitness Survey examined consumers' emotions along with their actions, or what they are doing to prepare for retirement. The national survey of 2,100 consumers follows Wachovia's inaugural Retirement Fitness Survey released in 2005.
While more consumers are responding to issues over Social Security, the number of those who are concerned about retirement is similar to the initial survey. More than half of consumers expressed uncertainty (58%), worry (55%), or fear of making a mistake (50%) when preparing for retirement. Also, 43% reported feeling overwhelmed, saying there are too many choices of where and how to invest, the market requires constant monitoring or they can’t afford to save. Women, on average, were more likely to express one of these emotions.
“People are still very concerned about where they are in the planning cycle, especially considering the fact that they must plan and save for longer years in retirement,” Reid said. “Increased longevity, combined with concerns over retirement savings, have created a new retirement reality for many people.”
Consumers were asked in the survey to provide tips to help others get in better retirement shape. Their top responses included talking to an advisor (16% of respondents); setting up automatic deductions or direct deposits into accounts (12%); depositing small amounts of money every month (12%); contributing to an IRA 0r 401(k) (11%); and budgeting and tracking expenses to find money to save (8%).
Four retirement fitness categories were developed based on results from the survey. A short Retirement Fitness Quiz is available at http://www.wachovia.com/retirement to help individuals determine their category. The fitness categories include:
At the starting line (31%). Consumers in this group are concerned about saving for retirement and may not be doing enough to prepare. More than the other groups, they feel uncertainty, worry and fear.
Looking fit (9%). Consumers in this group are concerned about saving for retirement but they appear to be on the right track. Their main concern is feeling overwhelmed with too many choices of where and how to invest.
Fitness evaluation may be useful (29% of respondents). Consumers in this group are not as prepared for retirement as some of the other groups, but they also are not as concerned.
Peak Performer (31%). Consumers in this group are not as concerned about their retirement savings and appear to be on the right track. More than the other groups, they feel confident, hopeful and involved.
Wachovia's Retirement Fitness Survey was conducted by Evanston, Ill.-based Richard Day Research, Inc. (RDR). The results are based on online interviews with 2,100 consumers nationwide, ages 35-64 with household income or household investable assets greater than $75,000.
The consumer survey is part of Charlotte-based Wachovia Corporation’s ongoing, companywide focus on the retirement planning market for individuals and institutions. Wachovia offers consumers a complimentary retirement consultation through its more than 3,100 Financial Centers. Consumers also can speak to trained and licensed retirement specialists by calling Wachovia's Retirement Resource Center at 888-840-2517. In addition, Wachovia Securities offers detailed planning tools through its sophisticated EnvisionSMinvestment-planning process1.
The Retirement and Investment Products Group, a division of Wachovia's Capital Management Group, consists of retirement products and services for retail and institutional customers. Wachovia's Capital Management Group includes the Retirement and Investment Products Group, Wachovia Securities retail brokerage business, Evergreen Investments asset management business and the Securities Lending business.
Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with banking operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Wachovia had assets of $520.8 billion, market capitalization of $82.3 billion and stockholders' equity of $47.6 billion at December 31, 2005. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve more than 13 million household and business relationships primarily through 3,131 offices in 15 states and Washington D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, also serves clients through 719 offices in 49 states, Washington D.C., and six Latin American countries. The Corporate and Investment Bank serves clients in selected industries nationwide. Global services are offered through 40 offices around the world. Online banking and brokerage products and services also are available through wachovia.com.
1Unlike financial planning, Envision does not include a detailed analysis of insurance, real estate investment or savings strategies. It also does not cover estate and tax planning
Wachovia Securities is the trade name under which Wachovia Corporation provides brokerage services through two registered broker-dealers: Wachovia Securities, LLC, member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, member NASD/SIPC. Each broker-dealer is a separate non-bank affiliate of Wachovia Corporation.
CHARLOTTE, N.C. – While many consumers continue to express a great deal of uncertainty and worry about how well they are preparing for retirement, concern over Social Security has led to additional planning, saving and investing for retirement, according to a new Wachovia survey.
Wachovia's annual Retirement Fitness Survey revealed that more than 80% of consumers said Social Security will be important to their own retirement well-being, yet nearly half are not confident that it will be available to them when they retire.
As a result, 51% of consumers say they are making changes to how they prepare for retirement. Those changes include increasing their retirement savings in 401(k) plans and IRAs, planning more precisely, investing in alternate investments like real estate and working with a professional advisor.
“People are realizing more and more that they have to take their retirement well-being into their own hands,” said Bob Reid, president of Wachovia’s Retirement and Investment Products Group, adding that 18% of consumers have lowered their lifestyle expectations in retirement. “The headlines around Social Security issues and pension cutbacks have caused more individuals to look in the mirror and consider their own retirement situations.”
In recent years, the future of Social Security has been a topic of national debate, and several companies have announced plans to freeze their pension plans. In his State of the Union address, President Bush called on Congress to create a commission to examine the full impact of baby boom retirements on Social Security.
Wachovia's annual Retirement Fitness Survey examined consumers' emotions along with their actions, or what they are doing to prepare for retirement. The national survey of 2,100 consumers follows Wachovia's inaugural Retirement Fitness Survey released in 2005.
While more consumers are responding to issues over Social Security, the number of those who are concerned about retirement is similar to the initial survey. More than half of consumers expressed uncertainty (58%), worry (55%), or fear of making a mistake (50%) when preparing for retirement. Also, 43% reported feeling overwhelmed, saying there are too many choices of where and how to invest, the market requires constant monitoring or they can’t afford to save. Women, on average, were more likely to express one of these emotions.
“People are still very concerned about where they are in the planning cycle, especially considering the fact that they must plan and save for longer years in retirement,” Reid said. “Increased longevity, combined with concerns over retirement savings, have created a new retirement reality for many people.”
Consumers were asked in the survey to provide tips to help others get in better retirement shape. Their top responses included talking to an advisor (16% of respondents); setting up automatic deductions or direct deposits into accounts (12%); depositing small amounts of money every month (12%); contributing to an IRA 0r 401(k) (11%); and budgeting and tracking expenses to find money to save (8%).
Four retirement fitness categories were developed based on results from the survey. A short Retirement Fitness Quiz is available at http://www.wachovia.com/retirement to help individuals determine their category. The fitness categories include:
At the starting line (31%). Consumers in this group are concerned about saving for retirement and may not be doing enough to prepare. More than the other groups, they feel uncertainty, worry and fear.
Looking fit (9%). Consumers in this group are concerned about saving for retirement but they appear to be on the right track. Their main concern is feeling overwhelmed with too many choices of where and how to invest.
Fitness evaluation may be useful (29% of respondents). Consumers in this group are not as prepared for retirement as some of the other groups, but they also are not as concerned.
Peak Performer (31%). Consumers in this group are not as concerned about their retirement savings and appear to be on the right track. More than the other groups, they feel confident, hopeful and involved.
Wachovia's Retirement Fitness Survey was conducted by Evanston, Ill.-based Richard Day Research, Inc. (RDR). The results are based on online interviews with 2,100 consumers nationwide, ages 35-64 with household income or household investable assets greater than $75,000.
The consumer survey is part of Charlotte-based Wachovia Corporation’s ongoing, companywide focus on the retirement planning market for individuals and institutions. Wachovia offers consumers a complimentary retirement consultation through its more than 3,100 Financial Centers. Consumers also can speak to trained and licensed retirement specialists by calling Wachovia's Retirement Resource Center at 888-840-2517. In addition, Wachovia Securities offers detailed planning tools through its sophisticated EnvisionSMinvestment-planning process1.
The Retirement and Investment Products Group, a division of Wachovia's Capital Management Group, consists of retirement products and services for retail and institutional customers. Wachovia's Capital Management Group includes the Retirement and Investment Products Group, Wachovia Securities retail brokerage business, Evergreen Investments asset management business and the Securities Lending business.
Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with banking operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Wachovia had assets of $520.8 billion, market capitalization of $82.3 billion and stockholders' equity of $47.6 billion at December 31, 2005. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve more than 13 million household and business relationships primarily through 3,131 offices in 15 states and Washington D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, also serves clients through 719 offices in 49 states, Washington D.C., and six Latin American countries. The Corporate and Investment Bank serves clients in selected industries nationwide. Global services are offered through 40 offices around the world. Online banking and brokerage products and services also are available through wachovia.com.
1Unlike financial planning, Envision does not include a detailed analysis of insurance, real estate investment or savings strategies. It also does not cover estate and tax planning
Wachovia Securities is the trade name under which Wachovia Corporation provides brokerage services through two registered broker-dealers: Wachovia Securities, LLC, member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, member NASD/SIPC. Each broker-dealer is a separate non-bank affiliate of Wachovia Corporation.
posted by Kirby P at 6:34 PM
<< Home