Struggling to Retire? Planning Size of Nest Egg is Key to Financial Security

New AARP Survey Finds People with Access to Workplace Plans Better Prepared For Retirement - Auto-enroll in 401k Would Help Many Workers

    CHICAGO, Nov. 13 /PRNewswire-USNewswire/ -- Only half of American families have saved money in any kind of retirement account - and many families that do, haven't saved nearly enough. A new AARP survey released today helps shed light on the problem - people who plan the size of their retirement nest egg early on will most likely save more and change their spending habits and people with access to workplace savings plans, such as 401(k)s, are better informed and prepared to retire.

    In Illinois, AARP is working with businesses across the state to better educate employees on how to have a secure retirement. One of the key initiatives AARP is focusing on is businesses automatically enrolling employees into company 401(k) plans to better prepare for retirement.

    "A secure retirement doesn't just fall in your lap - it takes careful planning and effort," said Bob Gallo, AARP Illinois State Director. "Sometimes simple steps, like auto-enrollment in 401(k) plans, give employees the helping hand they need today to meet their retirement needs tomorrow."

    According to the AARP survey, "Retirement Preparedness: The Haves and Have-Nots," while only 43 percent of working households have begun to figure out how much money they will need to save for retirement, 44 percent of these households changed their savings and spending behavior based on this planning.

    "The problem is pretty clear - people aren't saving enough for their retirement, but families who begin to discuss the cost of retirement tend to start saving more, spending less, paying off debts and even enrolling in a retirement savings plan at work," added Gallo.

    The report gauged the level of retirement preparedness among those households participating in an employer-sponsored 401(k) or 403(b) plan compared to those who do not have access to a retirement savings plan at work. Households that participate in a defined contribution plan are more likely to have saved for retirement (86% vs. 51%) and to have made changes in their savings habits after calculating how much savings they will need for retirement (53% vs. 32%).

    Resources and tools families can use to determine the size of their nest eggs include the AARP retirement calculator

    AARP has over 1.7 million members in Illinois. AARP is a nonprofit, nonpartisan membership organization dedicated to making life better for people 50 and over. We provide information and resources; offer a wide range of unique benefits, special products, and services for our members. These include AARP engage in legislative, regulatory and legal advocacy; assist members in serving their communities; and The Magazine, published bimonthly; AARP Bulletin, our monthly newspaper; Segunda Juventud, our quarterly newspaper in Spanish; Live and Learn, and our quarterly newsletter for National Retired Teachers Association members. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

SOURCE AARP