One account may make all the difference in Americans’ retirement confidence.
According to an annual study from TIAA, investors who own IRAs are significantly more comfortable with their retirement preparations than those who aren’t. Almost all IRA contributors, 91 percent, report that they are confident about their retirement savings, compared to 64 percent of respondents who were not contributing to an IRA.
While most Americans can access an IRA, respondents in the 2017 TIAA IRA Survey said that they weren’t saving in one because they lacked an understanding of the accounts, because they felt the accounts were to complicated, or because they believed that they did not have sufficient funds to invest in one, according to TIAA.
TIAA reports that in reality, while most IRA owners contribute more than $1,000 a year, one-in-five of respondents with an IRA contribute $250 or less each year.
Source: FA Magazine