RICHMOND, Va., March 26, 2015 /PRNewswire/ -- Genworth (NYSE: GNW) today released the results of its generational planning study that takes a look at the country's view on aging and retirement to better understand Americans' sentiments on topics like health, retirement contributions, long term care and most importantly, how they are planning for these situations. According to the study, more than half (53%) of adults have not started making financial arrangements for retirement, and four in ten respondents stated not having saved enough for retirement is their biggest financial regret.
"Preparing ourselves financially for future aging and care needs is one of the biggest issues Americans are facing today. Competing financial obligations, lack of information and even fear prevent many from making a plan simply because they don't know how to approach retirement planning and take the first step," said Tom McInerney, President and CEO of Genworth. "Armed with this research, our goal is to work alongside other organizations that focus on aging-related issues to help give Americans the tools they need to create a plan of action at every stage in life."
Interestingly, of respondents who have started making retirement arrangements, the average age is 33. Respondents also report average annual retirement savings of $7,360 and median saving of $500. When asked about the amount of money they will need to retire, adults said they anticipated needing, on average, $1.7 million for retirement. At that current $7,360 annual savings rate, a 33 year old would only have approximately half a million at age 65, assuming a 4 percent compound interest rate.
"We hope that the insights gleaned from this research will be instrumental to the myriad of organizations we work with as they help guide their members and other constituents on how to approach their aging and retirement needs. One of the more encouraging statistics that we saw represented was that the younger generations are increasingly paying attention to these issues," concluded McInerney.
Concerns about Aging and Care
A major component of retirement planning that tends to be overlooked by Americans is the potential need for long term care. Genworth is committed to increasing awareness as this is one of the country's biggest societal issues with 70 percent of American adults over the age of 65 eventually requiring some form of long term care1. Health and finances are among the two most frequently mentioned aging concerns at 71 percent and 63 percent, respectively. This shows both are top concerns that need addressing, especially since the study showed less than one-third of adults will look to themselves or their spouses for care with aging.
Plan at Every Age for Every Stage
Americans can take several easy steps for their financial and families' well-being. The survey revealed that better preparations are needed as too few have a will, designated guardians or advanced medical directives. These three, little to no cost actions can be added to a financial checklist that spans every stage of life. It is increasingly more important to develop good habits earlier in the retirement planning process, even though life changes and aging tend to be the impetus for many to start planning for their aging and retirement needs.
For additional resources about aging and retirement and the importance of planning to help families start a conversation for the future, please download the informative report. You can also visit www.longtermcareinsurance.org for additional information. To help get the conversation started about planning for long term care visit: Genworth Let's Talk.
About Genworth's Generational Planning Study
Genworth's Generational Planning study was conducted in collaboration with J&K Solutions, LLC and The Olinger Group. The data from this study was collected from an online survey during February 2015. A demographically representative sample of 1,000 adults ages 18 and older across the United States were surveyed providing a highly stable and reliable data source. The sample follows the framework of the 2010 U.S. Census data for age, ethnicity, gender, region and income. This allows for estimates of the stated population within +/- 3% with 95% confidence, unless otherwise noted.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company committed to helping families become more financially secure, self-reliant and prepared for the future. Genworth has leadership positions in long term care insurance and mortgage insurance and competitive offerings in life insurance and fixed annuities that assist consumers in solving their insurance, retirement and home ownership needs.
Genworth operates through three divisions: U.S. Life Insurance, which includes long term care insurance, life insurance and fixed annuities; Global Mortgage Insurance, containing U.S. Mortgage Insurance and International Mortgage Insurance segments; and the Corporate and Other Division, which includes the International Protection and Runoff segments. Products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth, headquartered in Richmond, Virginia, traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com. From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com. From time to time, Genworth's publicly traded subsidiaries, Genworth MI Canada Inc. and Genworth Mortgage Insurance Australia Limited, separately release financial and other information about their operations. This information can be found at http://genworth.ca and http://www.genworth.com.au.
1 U.S. Department of Health and Human Services http://longtermcare.gov/the-basics/who-needs-care/
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SOURCE Genworth Financial, Inc.