Survey: Americans Not Planning Their “Retirement Paycheck’ (NAPSA)—Even though they Iznorance—Early withdraw- als from a 401(k) or other retirement account could result in stiff penalties—both at the time of withdrawal and when the year’s tax bill comes due. Too conservative—It’s possible to outlive your savings, espe- may have donea good job of accumulating assets, a majority of Americans are unprepared for retirement. Successfully planning and preparing for a comfortable oy wits 7) ‘ retirement has become a sensitive issue, and this sensitivity is likely heightened for those who are ei ducted for ING U.S. financial ser- vices, approximately 75 percent of respondents either do not understand, or haven’t considered, how to convert their total retirement savings into their own “retirement paycheck”—and maximize the options available to them to best meet their personal needs. Even more alarming, most preand post-retirees (69 percent of 50- to 70-year-old Americans) have no plan in place for their retirement paycheck. “Americans have become con- ditioned to think that by building € r. ae sah : Feabi : a ae cially since interest likely won’t keep up with inflation. Insufficient planning and con- savings, many Americans still aren’t preparedfor retirement. growth potential can significantly — x ai quickly approaching the retirement phaseof their lives. According to a survey con- e ae H : . a i, =r, i ie 3 c r rE ‘ae ) Se ‘ : ee ~ ik, eeeee # et vem ns ee ee, s afl Bee ‘ at * bite, We ev ofLg Pay Ee CT _: ? rig |), Even though they’ve accumulated Financial Horizons, a division of ING Financial Advisors, LLC. He emphasizes that individu- als need to plan how to best con- vert their nest egg into a long- term income stream they won’t outlive. The consequences of careless decisions stemming from inadequate planning can undermine years of successful scrimping and saving. Ready to retire? a retirement nest egg they are Industry data shows that there are approximately 14 million households in the U.S. with between Mathews, president of ING’s investable assets with many of financially prepared to retire, but there’s more,” says Shaun TOP “WATCH-OUTS” FOR PEOPLE ENTERING RETIREMENT Notplanning soon enough about income. Premature withdrawal. Overly aggressive distributions. Overly aggressive assumptions about investment markets. Under-investing. No planning for the unexpected. Lack of realism about how large the nest egg needsto be. $100,000 and $1 million in those households nearing retire- ment and looking for a helping hand. Even for those with sizable nest eggs, a secure retirement can be jeopardized by common errors or events: Unexpected turn of events— A long-term illness, death of a spouse or an expected inheritance that doesn’t materialize can all affect a couple’s financial outlook. Overly aggressive invest- ing—Having too much money invested in stocks, bonds or other securities could affect overall sav- ings if the markets drop. sideration for the impact of taxes, accessibility and diminished compromise an individual’s retire- ment experience. According to Mathews, “Mistakes can be costly and painful.” ING Financial Horizons Advi- sory Program provides objective advice and choices from a broad range of investment solutions. The needs-based planning and coaching is intended to provide advice that’s well matched to an individual’s particular situation— and will remain active before and after retirement. The company’s online “Readiness Checkup” works for both individuals and couples, based on such information as age, income, saving, assets and investment style. The resulting report may be an important blueprint for plan- ning a retirement that is comfort- able and not too difficult to achieve. “The good newsis that, unlike the accumulation phase of an individual’s retirement planning, creating a plan for a retirement pay- check can be done quickly and effectively with the help of experi- enced retirement advisers,” said Mathews. A consumer Retirement Readiness calculator is available at www.ing-usa.com/RetireReady.
