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What does Your Retirement Picture Look Like? Learn More about the Powerful IRA Savings Tool at Upcoming Seminar
Wednesday, March 26, 2014 6:40 AM

People know they need to save for retirement, but according to a survey by Capital One ShareBuilder, only 72 percent of Americans are actually doing it. While 93 percent think they should contribute some portion of their income toward retirement and half believe it should be more than 10 percent, only one-fifth are currently saving 10 percent or higher.

Nearly 60 percent of Americans say they plan to retire by age 65, but nearly the same percentage fear they’ll never save enough to do it. Forty-one percent of those surveyed believe they are saving less than the average person their age.

According to Deborah Crawford, Individual Retirement Accounts (IRAs) are a powerful savings tool that many consumers are not taking advantage of. IRAs are essentially a savings account with significant tax breaks. While IRAs are a common a product for credit unions, some consumers may be unaware.

Credit unions will have an opportunity to learn more about IRAs from Crawford at the Cornerstone Credit Union League’s IRA Basics and IRA Advanced seminars May 13-14 in Dallas. Credit unions can attend one or both seminars, and online registration is now available.

At the IRA Basics seminar, Crawford will focus on IRA Basics. This seminar is essential for IRA administrators new to IRAs, as well as those looking to gain additional knowledge about IRAs. In the IRA Advanced seminar, Crawford will focus on compliance, auditing and reporting. She will cover everything credit union professionals need to know about IRAs, including legislative updates.

For more information, including registration, please visit the Education section of Cornerstone’s website. If you have any questions, please contact Training & Events, at (469) 385-6630 or (800) 442-5762, ext. 6630

Educational grants are available through the Cornerstone Credit Union Foundation. To learn more, please visit www.cscuf.coop.

Other highlights from the Capital One ShareBuilder survey include:

  • Financial stress is keeping three out of four non-retired Americans (75 percent) up at night. The leading cause of sleepless nights for most non-retirees (34 percent) is supporting children and saving for college, while retirement is a top concern for only 13 percent. 
  • Among non-retirees, 61 percent of women and 52 percent of men are concerned they may never save enough for retirement.
  • One quarter of non-retired men report they are not at all concerned with the prospect of not having enough to retire, and employed men tend to save a higher percentage of their income for retirement than women (an estimated 7.2 percent vs. 5.6 percent, respectively). 
  • Non-retired Americans ages 45-64 are more likely to be concerned they’ll never save enough for retirement (at 63 percent), while younger generations (ages 18-34) are less likely (at 52 percent). 
  • Working Americans indicate they know they aren’t saving as much for retirement as they should, with nearly a quarter of employed adults not actively contributing.
  • Employed Americans ages 35-64 are more inclined to believe they should save more than 10 percent of their income for retirement than those ages 18 to 34.
  • Among employed adults, the average percentage of their income saved for retirement increases with household income, ranging from an estimated 3.7 percent (less than $35,000 a year) to 10.4 percent ($100,000 or more). When asked how much the average 45-year-old person needs to save to retire at age 65 and have an after-tax income of $50,000 a year, slightly more than half of non-retirees said less than $1 million is needed.
  • On average, people are saving only 6.4 percent of their annual income for retirement.