Americans indicate their financial future looks brighter, due to a more optimistic economic outlook, according to a new report from the Principal Financial Group.
Despite the economic difficulties of the past two years, more than a quarter (28 percent) of employees and 20 percent of retirees are optimistic regarding their economic outlook for 2011. Nearly half (45 percent) of workers and 57 percent of retirees are cautious. Only 15 percent of workers and 17 percent of retirees indicate they are pessimistic.
“As their confidence in the economy improves, Americans are starting to rekindle their sense of hope and look ahead to long-term possibilities,” said Luke Vandermillen, vice president of retirement and investor services at the Principal Financial Group.
“Now that they’ve moved past the point of simply riding out the storm, Americans are beginning to dream again about their financial future.”
While nearly half (48 percent) of workers are aware of the amount of money they need to set aside in order to comfortably retire, less than a third (30 percent) believe they are saving enough money to do so. The number of workers who have not yet planned for retirement remains relatively unchanged, at 24 percent, only a 2 percentage point decrease from the previous quarter.
“As Americans look to the future, they must remember to stay disciplined when it comes to planning and long-term savings. Without a plan in place, Americans are putting their retirement dreams at risk,” said Vandermillen.