Recession Causes Confusion over How to Save for Retirement

A COUNTRY Financial survey revealed that 41% of respondents are more confused about how to save for retirement after the recession.

While 48% have decreased the amount of money they are putting away for their retirement, an equal number have either increased (12%) or maintained their level of savings (35%). According to the survey results, 41% said they have moved their money into less risky investments as a result of the recession.     

Despite the confusion and changes to retirement savings, 53% said the economic conditions will not force them to delay their retirement. Of those who do anticipate postponing their golden years, 64% expect to wait more than three years longer than originally planned.     

Just 30% of respondents indicate it is possible for a middle-income family to save for a secure retirement, a 5-point drop from 2009 and a 7-point decline compared to 2007, when the COUNTRY Financial Security Index began.      

The survey found those who say they are not involved in their family’s financial decisions tend to be more pessimistic than those who are involved. Fifty-eight percent of those who aren’t involved in decisions say it is not possible for a middle-income family to have a secure retirement, and, of those who think their retirement will need to be delayed, 95% expect this postponement to last three years or more.     

The national telephone survey of 2,340 non-retired Americans is compiled by Rasmussen Reports, LLC, an independent research firm.