Nearly half of all non-retired adult Americans still expect to retire with a pension, according to a new poll conducted for the American Institute of CPAs.
“Despite all evidence to the contrary, pensions are still regarded as a safety net for retirement,” said Carl George, chairman of the National CPA Financial Literacy Commission, in a statement. “Americans have to understand that many of the entitlements of their predecessors are not guaranteed.”
Of 1,000 surveyed adults, 48 percent said that they expect to retire with a pension. Noting that more and more companies are shifting from defined benefit plans to defined contribution plans, such as a 401(k), the AICPA said that only 14 percent of American adults mentioned their company’s 401(k) plan when asked about ways they save.
The survey, which was conducted by Harris Interactive, found that the statistic was similar for younger workers. Only 11 percent of workers under the age of 35 indicated that they are participating in their company’s 401(k) plan.
The AICPA suggested a number of steps Americans can take to prepare for retirement, including:
- Knowing their retirement needs;
- Learning about their employer’s pension or profit-sharing plan;
- Putting their money in an IRA;
- Refusing to touch their savings; and,
- Finding out about their Social Security benefits.
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