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U.S. Workers Save More, Retire Later"
NEW YORK -- People save more for retirement in the United States than in any other country, but most Americans expect to work longer than they desire, according to AXA Retirement Scope, a recent survey on life, work and retirement. In fact, 76% of U.S. workers are saving for retirement, compared with less than 40% of workers in Italy, Spain and The Netherlands, the survey found. Other key findings include:Americans lead the world in preparing for their retirement. Nearly 80% of Americans surveyed have a plan for where they want to live, what they want to do, and how much money they'll need in retirement. Most people started planning for retirement early, in their 30s.Americans are taking responsibility and making themselves more knowledgeable about retirement issues, with 90% of respondents saying funding retirement is primarily their individual responsibility -- not the government's or their employer's.Americans are the most likely to seek information about retirement from outside sources. Financial advisers, employers, banks and insurance companies are their leading sources for retirement planning, cited by nearly 70% of U.S. workers.Working Americans are saving, on average, $687 per month toward retirement. Based on other responses, this figure reflects their investment in such savings vehicles as conventional savings plans, life insurance policies and pension plans. Retirees save $535 per month, on average.Retirees, on average, say they are retiring at 58 years old. American workers, however, say they would like to retire at 55, but, in reality, don't expect to retire until they are 63.Home is the primary residence for most retirees. Fully 92% of U.S. retirees are living in a home they own. An equal percentage feel staying at home or moving to another region or country would be ideal. Only 2% of retirees want to move in with their children. Worldwide, however, nearly all respondents felt taking care of their grandchildren and helping out financially are major roles to assume during retirement.Retirees worldwide are an active group. New Zealand retirees lead the world in gardening, sports, cultural interests, walking/hiking and visiting the family. In the United States, 37% of retirees travel, a significantly higher rate than in other countries and apparently reflecting a desire to make up for fewer opportunities to travel while working. Additionally, 19% of U.S. retirees enjoy a hobby, 18% participate in sports and 16 % volunteer.The U.S. standard of living for retirees is nearly equal to their standard of living while working. For 72 % of U.S. retirees, the standard of living has remained the same or improved during retirement. Two-thirds of U.S. workers agree, while more than 50 % of German workers expect a decline.Incomes decrease for retirees, but this does not drastically affect their standard of living. Six in 10 feel their retirement income is sufficient in the United States, and nearly 10% say it will be completely sufficient. Retirees are apparently adjusting to the reality of living on a lower income in retirement."Overall, the research paints an extremely positive picture about retirement, both in the U.S. and worldwide," says Ken Gelman, vice president and director of market research for AXA Financial Inc., which represents AXA in the United States "So far, retirees are finding life rewarding and fruitful."Visit AXA Financial Inc.: www.axa-financial.comThis report is new this week in The Business Journal's small business how-to section. To see what else is new, click here or click on the "how-to" tab at the top of The Daily Business Journal Online home page."