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Financial Press Release
Dentist, Sit-Ups or Financial Planning?
More than eight out of 10 (84 percent) expect to see their dentist this year for regular cleanings while less than half (43 percent) plan to meet with their financial advisor to review their investment strategies and only half (51 percent) intend to create or review a financial plan, according to the second survey on retirement from The
Seven out of 10 (70 percent) said they plan to get more exercise regularly in 2013 while only 46 percent plan to increase saving and investing. Overall, two-thirds (65 percent) view money and finances as complex while 67 percent say they procrastinate over financial matters.
"People are finding it easier to develop habits devoted to physical fitness than for financial fitness," said
The survey, which focuses on Americans between the ages of 35 and 70 with at least
"In retirement, your financial focus will shift to protecting your assets and developing an income stream to meet your retirement expenses. It's vital to keep in mind that assets will likely need to stretch 20 to 30 years or more," Pappaterra said.
Other findings in PNC's survey revealed insights from those actively planning retirement:
- Off track: Only 19 percent believe they are doing better than expected on saving for retirement and less than half (47 percent) believe they are where they need to be. About a third (31 percent) believe they are somewhat behind where they expected to be.
- Looking for help: Fewer than half (46 percent) have used a professional financial advisor to develop a financial plan. And over half (54 percent) say they would like more advice on preparing for retirement from a financial advisor or planner.
- Best moves: Four in 10 (43 percent) said their best moves in retirement planning included putting as much as they could into retirement plans, contributing by automatic deduction and keeping money in retirement accounts, while 15 percent listed "living within my means" as their best action.
- Living Wisely: Most (77 percent) believe they do an excellent or very good job of living within their means.
Retirement Readiness Tips
"Just as with exercising, there are good habits we can all follow to maintain our financial fitness and proactive steps that can help future retirees get their finances in order," Pappaterra said.
Tips include increasing contributions to a workplace retirement plan until the limit is reached and maximize contributions to Individual Retirement Accounts (IRAs) and employer-sponsored defined contribution plans. Employer-sponsored plans, including 401(k)s, and IRAs offer great advantages including tax-deductible contributions and tax-deferred growth, he said.
Other steps to financial fitness include paying down a mortgage, paying off debt, rolling over 401 (k)s from past employers into IRAs or current 401 (k)s and saving for emergencies, he said.
Also critically important, Pappaterra said, is to know how much an individual will need to maintain a current lifestyle; reduce spending to maximize retirement savings; consider future health care expenses and think about timing of beginning
An online media kit containing survey highlights, background information and graphics are available on PNC's website at http://www.pnc.com/pncpresskits.
The Perspectives of
The survey was designed by
This report has been prepared for general informational purposes only and is not intended as specific advice or recommendations. Information has been gathered from third party sources and has not been independently verified or accepted by The