Americans are juggling finances and making trade-offs to ensure that they will have the money they will need in retirement, according to the results of a recent survey by the Society of Actuaries.
The SOA Research Institute conducted an online survey of 1,000 US respondents, working or retired, who both regularly save for retirement and currently are saving at least $500 a year for a relative’s or friend’s college education.
“The challenge of prioritizing different savings goals, including college for family members, has led to families making difficult choices, such as delaying retirement plans,” SOA Research Institute Managing Director of Research R. Dale Hall, FSA, MAAA, CERA, said in a statement.
“This consumer survey helps identify the underlying challenges individuals and couples face in balancing multiple financial goals, such as funding college education, providing for unexpected financial needs and planning for a secure retirement,” he added.
Ninety-three percent of respondents said they are saving for their own children’s college education, and 66% of baby boomer respondents — those born between 1946 and 1964 — said they are saving for their grandchildren’s education.
Along with college and retirement, survey participants said they are saving for emergencies, travel and new homes.
Forty percent of respondents said they will or have had to take out loans to cover major expenses. An equal number of participants said they are working longer hours, and 26% said they have taken on additional jobs in response to the dual saving goals.
Read more articles from the McKnight’s Business Daily here.
