Almost Half of Americans Still on Track to Timely Retirement, Brinker Capital Survey Says
Brinker Capital, a leading investment management firm, today released the first quarter results of its Brinker Retirement Indicator, a gauge of financial advisor sentiment regarding retirement-related issues.
“Despite the market volatility that began last year and still continues today, fully 46% of our financial advisor respondents said their clients are still on track to a timely retirement,” noted John Coyne, President of Brinker Capital. “We believe this statistic has powerful implications for the importance of good financial advice, staying the investment course and getting an early start to a systematic retirement savings regimen. While there may yet be some dark clouds on the economic horizon, overall the Retirement Indicator’s results provided a much more optimistic picture of America’s retirement landscape than we had initially anticipated.”
TARGETING A TIMELY RETIREMENT BULLSEYE
When asked if their clients were on- or off-track to a timely retirement relative to their expectations a decade ago, 46% of advisors noted their clients are still on track. Respondents who noted “off track” to this question, indicated it would only take between one and five years to make up the retirement savings shortfall. As to the reasons for being off-track1, 63% said “started saving too late,” 55% noted “general procrastination,” and 23% said “didn’t have access to financial advice.”
“TYPICAL” RETIREMENT AGE AN ARCHAIC NOTION
Perhaps no question in the Retirement Indicator engendered as vigorous a response as: “Do you think the concept of a ‘typical’ retirement age is still relevant in the US today?” Fully 86% of financial advisors weighed in with a resounding “no.” Asked why they think the concept is no longer relevant, 59% said “traditional retirement is just an outmoded concept; people will work as long as they feel physically and mentally able;” 17% said “serious retirement saving began too late for most Americans;” and 8% said “people are living longer, therefore they’re working longer.”
When asked if their clients expect to work past 65, the results were split 54% vs. 46% in favor of “yes.”
RETIREMENT…AND THE LIVING IS EASY
When asked to comment on their already-retired clients’ spending patterns, and if these patterns had changed since retirement, 60% of advisors noted that the spending habits hadn’t changed at all. Thirty-seven percent said their retired clients had become more frugal, and 3% indicated their clients had become more extravagant since retirement.
OTHER RESULTS
Responses to some of the Retirement Indicator’s other questions included:
85% of advisors picked John McCain as the best presidential candidate for retirement life in the US, followed by 11% for Hillary Rodham Clinton, and 4% for Barack Obama
“Time with family and friends” was selected by 44% of advisors as their clients’ main retirement focus, followed by 17% who said “work” (second career), and 16% who noted “travel.”
91% of advisors said their clients are concerned about effectively managing distributions from their retirement assets, compared to 84% of advisors who indicated they’re concerned about the same issue
For a copy of the full Q1 survey, please contact Jemile Dragovic, jdragovic@middlebergcommunications.com
About the Study
The Brinker Retirement Indicator was conducted online by Brinker Capital in March 2008. Results are based on responses from advisors affiliated with insurance companies, independent broker-dealers and in sole practice. The study’s copyright is held by Brinker Capital.
About Brinker Capital
Brinker Capital, Inc. is a leading independent investment management firm which provides managed account investment programs to individual and institutional investors through financial advisors. Brinker was founded in 1987 by Charles Widger and is located in suburban Philadelphia. Assets under management were over $9.7 billion as of March 31, 2008. Visit Brinker’s website at www.brinkercapital.com.
Notes
1. Respondents selected more than one answer