- Category: Widget
- Published: Wednesday, 12 August 2015 15:42
- Written by Isaac
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Many in U.S. Fear Outliving Their Savings, Study Says
Victory State Bank, Staten Island’s only community-based commercial bank, is concerned that many people may not be on track to a financially secure retirement.
Saving and retirement planning should be a priority during everyone’s working years, but the bank points to a recent report that indicates many Americans fear they will outlive their savings.
As the nation marks the 80th anniversary of the Social Security Act being signed into law this week, new findings from Northwestern Mutual's 2015 Planning & Progress Study reveal how much of the country feels they have little to no financial safety net.
The annual study, exploring Americans' attitudes and behaviors towards finances and planning, reveals that longevity risk – or the possibility of outliving your savings – is one the starkest examples of a serious financial fear that has largely gone unaddressed by Americans.
ACCORDING TO THE RESEARCH:
§ One third (31 percent) of U.S. adults believe there is greater than a 50 percent chance they will outlive their savings;
§ More than one in ten (12 percent) think there is a 100 percent chance their savings will run out someday;
§ One in four (24 percent) Americans are unsure if their savings will last;
§ More than half (52 percent) say they have not taken any steps to address the risk of outliving their savings; and
§ Nearly a third (30 percent) say it is not at all likely that Social Security will be there for them when they need it.
NO SAFETY NETS
As revealed in a previous wave of this study's findings, working Americans expect to retire at age 68 – a full decade later than when current retirees left the work force. Notably, 62 percent of those anticipating working beyond the traditional retirement age of 65 say it will be from necessity, with the vast majority (79 percent) citing insufficient savings and lack of confidence in social safety nets as leading concerns.
When asked about their primary safety net if they do outlive their savings, more than half (52 percent) of Americans expressed uncertainty:
§ One quarter (26 percent) said they don't know what their safety net will be; and
§ Another quarter (26 percent) don't think they will have a safety net
§ As for Social Security specifically:
§ 30 percent of Americans believe it is not at all likely to be there when they need it;
§ 52 percent believe it is somewhat likely to be there; and
§ 18 percent believe it is extremely likely
About Victory State Bank
VSB Bancorp, Inc. (OTCQX: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online at www.VictoryStateBank.com.