For my final post of 2012, I thought I'd address a topic that should be important to all of us. Enough about the fiscal cliff and taxes, at least for today. So I ask, what type of retirement do you want and are you "Keeping up with the Jones" with respect to retirement savings?
The phrase “keeping up with the Joneses” is all too common in Cincinnati and American society. If the neighbors have an expensive car, we want a more expensive car. If the neighbors just went on a luxurious vacation, we want to go on a more luxurious vacation. And, according to a new survey from ING Retirement Research Institute, if the neighbors have a healthy retirement savings, we want a healthier retirement savings. Does this competitive trend really last beyond our working years?
This new survey shows people not only upgrade cars and vacations to keep up with peers, they also increase retirement savings to compete with their peers’ savings. In fact, more than half of the survey participants said they would save more for retirement if their current savings wasn’t on par with their peers’. What’s more, the survey showed people used the size of their retirement savings more so than material possessions and salary when gauging themselves against others.
Because it’s not exactly polite to ask your neighbor how much he has saved for retirement, websites like INGCompareMe.com and ING State of Savings Map offer interactive tools that let consumers compare their retirement savings, debt levels and spending habits to their peers to gauge where they stand.
For a more detailed analysis of the survey, see “ING U.S. Study Sheds Light on Peer Comparison and the Retirement ‘State of Savings’ in America” or review the “Shedding Light on Retirement” White Paper released by the ING Retirement Research Institute here.
If you have any questions about any of the information contained in this blog, see the estate planning website of Cincinnati attorney, David H. Lefton, or contact him at 513-399-PLAN (7526) or by email at email@example.com.
Reference: ING (December 5, 2012) “ING U.S. Study Sheds Light on Peer Comparison and the Retirement ‘State of Savings’ in America”