Today's conventional wisdom may say Americans are
worried about retirement
, but an increasingly sizable percentage of consumers may not be
doing much about it.
According to the
New Retirement Mindscape 2012 City Pulse index
, a survey released last week by Ameriprise Financial, only 70
percent of U.S. consumers report preparing for retirement. That's
the lowest level recorded by the index in the past three years.
However, there were some bright spots in the survey, which
surveyed consumers between the ages of 45 and 70. Residents of some
metro areas reported higher than average levels of retirement
preparedness and confidence. Hartford-New Haven topped the ranking
of 30 metro areas, while Washington D.C. fell to the bottom
spot.
Top metro areas for retirement readiness
The index polled consumers from the 30 largest metro areas in
the United States to determine which residents were most prepared
and most confident in their ability to retire. These five metro
areas formed the top of the 2012 rankings.
- Hartford-New Haven
- San Diego
- Minneapolis-St. Paul
- San Francisco-Oakland-San Jose
- Philadelphia
Hartford-New Haven jumped in ranking from number six in 2011.
Three in four respondents in the area say they have set money aside
for retirement, and more than half invest money in an
employer-sponsored plan such as a 401(k). Seventy percent of the
region's residents said they have positive feelings about
retirement.
With the exception of Minneapolis-St. Paul, all the other
metropolitan areas in the top five spots were in the top 10 from
last year. The Minnesota metro area climbed 15 spots from number 18
in 2011. Meanwhile, the greater San Francisco area, which held the
number one position last year, saw its ranking drop slightly to
number four.
On the other end of the spectrum was Washington D.C. where only
12 percent of residents reported feeling very financially prepared
for retirement.
Election issues surveyed
In addition to retirement preparedness and confidence, the index
surveyed consumers on issues surrounding the upcoming presidential
election.
Consumers appear to be keyed into several issues that could
impact their retirement readiness. According to the index survey, a
significant percentage of respondents note that candidate positions
on the following issues are likely to influence their vote.
- Health care: 60 percent
- Social Security: 55 percent
- Taxes: 53 percent
- Medicare: 52 percent
- Unemployment: 41 percent
Concerns regarding these issues likely parallel the uneasiness
many consumers feel about their own
ability to retire
.
"The economic environment surely contributes to [retirement]
uncertainty," said Suzanna de Baca, vice president of wealth
strategies at Ameriprise Financial, in a written statement. "But
with proper planning, people can regain a sense of financial
security and confidence in the future."