Scottrade research reveals shrunk of Americans’ retirement confidence

Scottrade 2009 American Retirement Study reveals that one in three Americans expect they will ever be able to fully retire, representing a decline from 39% in 2008 to 32% this year. 

The study shows that the economy influenced significantly on Americans’ retirement picture. The value of retirement accounts is diminishing - 43% of Americans indicated their accounts declined since last year 10% or more. The study indicated that almost two-thirds of Americans said they do not plan to contribute to an IRA, that’s up from just over half last year, as retirement saving is suffering because of short-term financial pressures, such as day-to-day expenses, unexpected expenses and debt. Concerning Social Security, it’s still very important for Americans: 77% of citizens are concerned for its future and more than half think it will run out by the time they reach retirement. 

Boomers (67%) and Gen X (64%), those are the most concerned about having enough money for retirement generations. Gen Y, an Internet generation, has a different view: just 28% of them use retirement planning independently and 5% use an advisor. This research shows that Gen Y is fueled by a marked optimism that is unique to their generation, according to the words of Chris X. Moloney, Scottrade’s, chief marketing officer and executive director of customer intelligence. 

“They are actually slightly more confident this year that they will be able to save enough to fully retire - even though the amount they have saved has declined and more of them are concerned that Social Security will fall short”, he said. 

Speaking about the financial stress reducing, it’s important to say that across all generations, the top way they are addressing concerns is spending less. Gen X is taking the most action and leads the generations in using coupons (66%), cutting back on entertainment (65%), paying down debts (57%) and reducing credit card spending (55%). Boomers lead the pack in comparison shopping (70%). Gen Y leads to focus on increasing revenue: 30% intends to work more to earn more and 29 % are looking for a higher paying job. 

Despite all the economic troubles, Americans strongly believe in the economy, themselves and the Obama administration. About 50% of Americans think the economy will be recovered by the end of 2009, and 61% remain confident about their own ability to plan for retirement. 43% of Americans expect a positive impact in their financial status as President Barack Obama taking office this year; the most confident in Obama generation was Gen X: 49 % believe administration would have a positive impact.