Vast Majority of People Worry They Cannot Afford Retirement, Says Accenture Survey

By Michael Foster, Big4.com Blogger

According to a global survey released by Accenture, most people around the world are worried that they will not have enough money for retirement.

The survey asked over 8,000 people from 15 countries about their feelings towards their financial situation and their financial future. Over half (53 per cent in total) said that they do not know how to prepare for retirement and 57 per cent said that they lack the funds to invest in a private pension.

An overwhelming majority said that they are worried about paying for their retirement, with 82 per cent saying that they worry about how they will have money to live on after retiring.

Surveyed people also overwhelmingly were aware of the need to invest for retirement, with 89 per cent of people saying that it is important for them to start saving now for retirement. However, only 29 per cent said they currently have private investments for retirement.

Over 9 of ten surveyed said that they know they will need to fund their retirements themselves, with 93 per cent saying that they recognize that they will need to use their personal savings to cover their financial needs after retirement, while 67 per cent said they don’t know how they will maintain their standard of living after retiring.

Accenture Managing Director Mark A. Halverson said the study was “alarming”. He also said that the concerns are global and demonstrate a desire to save for retirement but an inability to do so for varied reasons. “In the current economic environment, people are increasingly worried about their financial future. They are willing to save money but have limited financial knowledge and limited saving abilities to actually do so,” he said. Halverson suggested that the need for financial planners is greater than ever. “These findings reveal a major unmet demand for retirement planning that industry professionals can help address. However, they will need to shape their products and services in a way that will help people take action and better prepare their future.”