The majority of Americans are keenly interested in retirement income, but they are unable to make the connection between how their retirement savings translates to income.
A recent survey and related report from JP Morgan indicates that 86 percent of 401k plan participants acknowledge that they need to know how much of their pre-retirement income they will be able to replace.
At the same time, however, two thirds of the survey respondents indicate that they have no idea how much they need to be saving for retirement.
Further, less than a third of respondents have enough savings to replace their stated income replacement objective of 75-100 percent.
Almost half of those surveyed express concerns about outliving their retirement savings.
The JP Morgan report highlights the need for retirement income education in the United States. Basic awareness of the amount of savings required for an adequate retirement and the income that can be generated by those savings are critical building blocks of retirement planning.
Source: MarketWatch and JP Morgan Asset Management
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