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T. Rowe Price Investment Services Vice President Stuart Ritter on the need for increased retirement contributions by the average American.
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In focus tonight your golden years he had to retire today when you be ready.
Recent survey finds most Americans aren't saving enough for retirement and some.
Aren't even sure how much they're really saving here to explain Stuart Ritter.
He's a financial planner and vice president T.
Rowe Price investment services the company that conducted the survey.
Sir thanks for coming on how is it possible that people don't even know how much they're saving.
Well one of the things that happens with a lot of people as a 401K.
Is not a plan if any event.
When they're hired on board they sign up they fill out the paperwork.
And for asking -- years later how much they're saving.
They really don't remember what number they wrote down a couple of years ago they may not know that 15%.
Is the amount that folks should be focused on getting.
Into their retirement account at at every paycheck so to some degree can understand why people end up in that particular.
Situation Lisa Cummins funny your pre interview you said saving 3% is like going to the gym for six minutes it's just not -- up -- up.
I like that will -- you find the survey that surprised you.
Well there -- a couple of positive things that surprised me we had 92% of people who have a 401K plan.
Actually making contributions.
We had 72% of people saying that retirement is their top priority not one of their priorities.
But the top priority so we had a lot of folks who recognize how important this is the idea that people don't know where don't care.
Doesn't fit.
Unfortunately.
The flip side of that is people are not saving enough.
Two thirds of people are saving less than 10% when folks need to be up at 15%.
As you said saving low amounts of like only going to the gym for a couple of minutes you need those numbers higher well you you focus on people age fifty and over and -- -- they're under committed to retirement -- But there's a new pew survey out today saying that thirty some things are the most concerned about retirement that's pricing you.
Not really given what these folks have been living through lately given the economy that they dealt with I can understand the anxiety.
And our message to them is similar.
You will feel more confident if there's an account with your name on it with a lot of money that you've saved for retirement so especially if you're starting early.
Now's the time to get the 15% going if you're salaries -- that means it's fewer dollars.
And then when your salary goes up that 15% means more dollars going in so that can help people feel more confident that they're taking control.
Of what their future will be like that idea taking -- -- Sir thanks for coming on tonight fascinating survey appreciate your time.
Thank you.
