Employers Are More Trusted than Advisors on Retirement Saving
When it comes to advice on planning, saving and investing, consumers are far more likely to trust their employers than financial advisors, according to new research from consulting firm Mercer. Meanwhile, despite the public’s unease about retirement, savings have reached a 10-year low in the U.S., according to Reuters.
While 79% have a high degree of trust in the advice they get from employers, only 56% trust financial advisors, according to a survey of 7,000 adults 18 and over and 600 public- and private-sector senior decision-makers across 12 countries conducted by Mercer. What’s more, only one out of six respondents has sat down with an advisor to estimate their retirement savings, according to the report.
Only a quarter of people approaching retirement are confident they’ll have enough to retire on, Mercer says. Furthermore, while 68% of respondents expect to continue working past retirement age or never retire at all, just 39% say they’re fit and healthy enough for their current job now, Mercer found.
And while people are concerned about retirement, 81% feel it’s their responsibility to save for it, according to the survey. Nonetheless, a full third of respondents haven’t even made any calculations for the income they’ll need in retirement, Mercer says. Meanwhile, changing demographics make it harder for various groups to save: Millennials frequently change jobs, women suffer from a gender gap in their salaries and gig-economy workers have no help whatsoever when it comes to saving, according to the report.
Consumer spending continues rising, increasing 0.4% in December after a 0.8% rise in November, according to Commerce Department data cited by Reuters. Savings, however, have fallen from $680.6 billion in 2016 to $485.8 billion in 2017, the lowest level in a decade, the newswire writes. And the savings rate dropped to 2.4% in December, the lowest it’s been since September 2005, according to Reuters. For 2017 overall, the savings rate was 3.4%, which is a 10-year low, the newswire reports.