CFP Board Consumer Advocate offers tips to stay on track
The Certified Financial Planner Board of Standards, Inc. (CFP Board) commissioned a consumer survey series examining four groups of Americans based on their saving patterns. One particular group stands out among the rest as they exhibit high confidence about their financial future due to their slow and steady approach to saving throughout their lifetime.
The group, identified as “Confident Savers,” consists of older Americans who have fewer children living at home. These individuals are similar to the other cohorts identified in this study; they hold a median income range of $50K-$100K, utilize employer-sponsored retirement plans, and believe Social Security is an important source of income for retirement. Where Confident Savers differ significantly is in their attitudes about saving. These individuals save money on a very regular basis and are twice as likely as their peers to consult a financial planner for advice.
Click here to view an infographic of the survey findings for this consumer segment.
In the latest contribution to LetsMakeaPlan.org, CFP Board explains why Confident Savers are ready for retirement:
- They prioritize savings: The highest financial prerogative of Confident Savers is saving money. In this regard, they are well ahead of the other groups in terms of what they see as important.
- They save regularly: Eighty-eight percent of Confident Savers save each and every month.
- They save early: On average, this group started saving for retirement around 25 years old – long before most people even start thinking about their retirement years.
- They value outside expertise: Confident Savers are twice as likely as the other groups to hire a financial planner to manage their money.
These four basic qualities can help anyone reach financial security. Confident Savers are the tortoises, not the hares, in life’s financial contest. They don’t have to push and sweat as retirement comes near – they can take it easy in those final laps. After all, isn’t that what retirement is for? Just like Confident Savers, you can speak with a CFP® professional to ensure a strong financial plan for retirement and beyond.
One thousand working Americans over 25 years old participated in the 20-minute online survey conducted May 13-16, 2016. The survey series released by CFP Board determined there are four demographics of Americans based on their saving patterns: Concerned Strivers, Stretched Worriers, Confident Savers and Tentative Savers. Given this is the third report in the series, CFP Board will release the final report on Stretched Worriers within the remainder of the year. A summary of the overall survey results can be found at www.CFP.net.