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Thursday, November 05, 2009

Report: Pre-Retirees in Denial on Savings

by Calculated Risk on 11/05/2009 09:24:00 PM

From CNBC: Boomers in Denial About Retirement Savings

Wells Fargo just released the results of its Retirement Fitness survey and looked hard at the investment habits of pre-retirees ages 50 to 59. What did they find?

“There is a sense of denial among the pre-retirees,” said Lynne Ford, head of Wells Fargo Retail Retirement.

Even after suffering significant losses last year, many remain overly optimistic about their investment returns and the ability of their savings to fund their expenses after they stop working.
On average, these pre-retirees expected they would need $800,000 to fund their retirement. However, most had only saved about $300,000.
I expect many of these pre-retirees will start saving more soon, and this is part of the reason I expect the saving rate to increase to 8% or so over the next couple of years. And for a more humorous take: