Almost Half Still on Track to Timely Retirement, Survey Says

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<p><strong>Berwyn, Penn. &mdash; April 3</strong><br />Brinker Capital, an investment management firm, released the first-quarter results of its Brinker Retirement Indicator, a gauge of financial-adviser sentiment regarding retirement-related issues.<br /><br />&ldquo;Despite the market volatility that began last year and still continues today, fully 46 percent of our financial-adviser respondents said their clients are still on track to a timely retirement,&rdquo; noted John Coyne, president of Brinker Capital. &ldquo;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&rsquo;s results provided a much more optimistic picture of America&rsquo;s retirement landscape than we had initially anticipated.&rdquo;<br /> <br /><strong>Targeting a Timely Retirement Bull&rsquo;s-Eye</strong><br />When asked if their clients were on- or off-track to a timely retirement relative to their expectations a decade ago, 46 percent of advisers noted their clients are still on track. Respondents who noted &ldquo;off-track&rdquo; 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-track, 63 percent said &ldquo;started saving too late,&rdquo; 55 percent noted &ldquo;general procrastination&rdquo; and 23 percent said, &ldquo;didn&rsquo;t have access to financial advice.&rdquo;<br /><br /><strong>&lsquo;Typical&rsquo; Retirement Age an Archaic Notion</strong><br />Perhaps no question in the Retirement Indicator engendered as vigorous a response as: &ldquo;Do you think the concept of a &lsquo;typical&rsquo; retirement age is still relevant in the U.S. today?&rdquo; Eighty-six percent of financial advisers weighed in with a resounding &ldquo;no.&rdquo; Asked why they think the concept is no longer relevant, 59 percent said &ldquo;traditional retirement is just an outmoded concept; people will work as long as they feel physically and mentally able;&rdquo; 17 percent said &ldquo;serious retirement saving began too late for most Americans;&rdquo; and 8 percent said &ldquo;people are living longer, therefore they&rsquo;re working longer.&rdquo;<br />When asked if their clients expect to work past 65, the results were split, with 54 saying &ldquo;yes.&rdquo; <br /> <br /><strong>Retirement: The Living Is Easy</strong><br />When asked to comment on their already retired clients&rsquo; spending patterns, and if these patterns had changed since retirement, 60 percent of advisers noted that the spending habits hadn&rsquo;t changed at all. Thirty-seven percent said their retired clients had become more frugal, and 3 percent indicated their clients had become more extravagant since retirement.<br /> <br /><strong>Other Results</strong><br />Responses to some of the Retirement Indicator&rsquo;s other questions included:</p><ul><li>85 percent of advisers picked John McCain as the best presidential candidate for retirement life in the U.S., followed by 11 percent for Hillary Rodham Clinton and 4 percent for Barack Obama.</li><li>&ldquo;Time with family and friends&rdquo; was selected by 44 percent of advisers as their clients&rsquo; main retirement focus, followed by 17 percent who said &ldquo;work&rdquo; (second career) and 16 percent who noted &ldquo;travel.&rdquo;</li><li>91 percent of advisers said their clients are concerned about effectively managing distributions from their retirement assets, compared to 84 percent of advisers who indicated they&rsquo;re concerned about the same issue.<br /></li></ul><p>For a copy of the full Q1 survey, please contact Jemile Dragovic, jdragovic@middlebergcommunications.com.<br /><br /><strong>About the Study</strong><br />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&rsquo;s copyright is held by Brinker Capital.<br /></p>

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