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Laurie Nordquist, Wells Fargo Institutional Retirement and Trust co-head, on the bank's new survey on American retirement preparation, and how the res...
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-- 38 cents.
New study finds that when it comes to retirement eighty is the new 65 cents because many middle class Americans are having to work longer -- afford retired.
Joining us now with more on this is this Wells Fargo survey is -- Norquist Wells Fargo institutional retirement.
And trust co -- -- thanks so much.
For joining us are we talking about folks who were thirty years from retirement or three years from retirement or what is the study -- While we surveyed.
Middle class Americans.
Making between 825000.
Dollars and really across all the ages Hitler saying -- I have to work longer and retirement.
That 25%.
Said I'm gonna work until at least age eighty and three quarters some seminal work in retirement.
Does this factor -- it is your study factoring in all the anticipated lack of benefits coming in the future from the government when it comes to Social Security Medicare Medicaid at least the very uncertainty about that when -- Well one of the things we found is that depending on age there's there's more certainty or at least confidence that Social Security's going to be there.
So those in their -- -- is only expect about.
20% of their income to come from Social Security much much higher when you get to up to those in their sixties.
We find another really interesting comment -- on Social Security we actually asked Americans if they would be willing to take a cut Social Security to help address.
That the debt issue that we see at the federal level.
And surprisingly big difference by age those under fifty actually almost half were willing to take a cut their Social Security.
Only -- 28% of those in their fifties and only 19% of those in their sixties so clearly though it's in their fifties and sixties.
There are more dependent on social security and assuming they're gonna get it.
-- there seems to be so much more financial literacy a lot of our financial participation in 401K plans and pension plans.
I was astounded by that fact -- even still 25% of Americans according -- study are not financially prepared.
For retirement.
How is that.
Well they're they're facing a lot of other concerns in fact we asked what they worry about the most they're paying their -- -- bills -- at the very top 37%.
That dropped down to health care costs education and planning for retirement was was fourth on the list.
In fact when we asked Americans what they need for -- -- state they said 350000.
Dollars.
The on average have only saved 7%.
Or 25000.
Dollar so a significant gap.
Wow so what is it that debt and that retirees.
People who -- the baby boomer generation and what can they do now because a lot of people get -- sense is it too late do I need to have to work until eighty is there anything that I can do.
To allow me this sort -- end of life and retirement experience and always dreamed up.
Right well I think Americans are really there is a reality check and -- there really recognizing there either gonna have to work longer and retirement.
Are they may have to reevaluate what they want their lifestyle to be in retirement.
And for those who are -- retirement age yet there's still things they can do in terms of related and leveraging their 401K plan or putting money in an Ira.
To hopefully start closing that gap that many Americans see.
Thank you very much -- Wells Fargo institutional retirement and trust -- it.
And this brings us to our question of the day winds use accessed by some of your retirement -- step -- and national deficit crisis lead us.
