The survey measures the likelihood for consumers to have determined the amount of money they need to save for retirement and their actual saving habits. Minneapolis/St. Paul claims the top spot on the retirement readiness index, but Houston comes in at number 14. Scott Tiras is with the Houston office of Ameriprise Financial.
“Absolutely. Most individuals have three competing goals, right? ‘One day, you know, I want to be able to retire.’ You know, two is ‘I want to be able to send my kids to college.’ And three is ‘I still want to live my life today,’ right? And so what happens is, is that more of the immediate ‘I need to live my life today,’ you know, comes out and so people start putting off their retirement savings.”
The index also takes into account if people have planned for activities during retirement and expressed confidence about achieving retirement goals.
“You know, the economic situation has impacted individuals’ confidence levels and they are on track. And then it also measures if they feel like if the plan that they may have put together will actually work out long-term, and so when you’re emotionally impacted by the loss of a job or by your peers losing their job, then naturally we would show that the confidence level would decrease.”
Washington, D.C. ranked sixth on preparation factors, with 80 percent setting aside money for retirement. But confidence in the nation’s capital is lagging, with 40 percent expressing negative feelings about retirement.