Study Finds Only 10% of Americans Possess ‘Optimal’ Traits for Retirement Savings”
A recent study by Goldman Sachs Asset Management, involving 5,261 US workers and retirees, reveals that just one in ten Americans exhibits the ‘optimal’ characteristics necessary for building a substantial retirement nest egg.
“The Four Key Traits Linked to Successful Retirement”
Researchers identified four key traits associated with individuals having the best savings for a comfortable retirement: high optimism, future orientation, financial literacy, and reward orientation.
“Characteristics of Successful Savers”
Individuals with these key traits demonstrated a higher level of savings, engaged in periodic reviews of their savings, and avoided cashing out their retirement funds, among other positive behaviors.
However, only 10% of respondents possessed all four optimal traits, while 5% exhibited ‘suboptimal’ characteristics.
1. High Optimism: Belief in Savings Goals
Having a high level of optimism was identified as a crucial trait for favorable retirement outcomes. Those with high optimism showed a strong belief in achieving their savings goals, leading to healthier retirement balances.
Optimistic individuals were also more likely to start personalized financial plans and review their savings regularly.
2. Future Orientation: Focusing on Long-Term Benefits
The trait of ‘future orientation’ (FO) played a significant role in good savings habits. Individuals with high FO were better at delaying rewards in the present, focusing on achieving long-term benefits.
Those lacking future orientation were more prone to cashing out retirement plans during job changes or making emergency withdrawals.
3. Financial Literacy: Understanding Financial Concepts
Strong financial literacy, including understanding concepts like compound interest and diversification, was linked to increased savings.
Individuals with high financial literacy tended to be older, often with partners, higher education levels, and greater household assets.
4. Risk Vs. Reward: Proactive Financial Behaviors
Respondents were categorized as either ‘risk vs. reward’ focused. Those with a reward-oriented mentality demonstrated more proactive financial behaviors, often leading to greater financial rewards.
On the other hand, those focused on security and protection were found to be less proactive in managing their finances.
Conclusion: Unlocking Retirement Success
The study sheds light on the rare combination of traits exhibited by the 10% of Americans with optimal characteristics for successful retirement savings.
These insights provide valuable guidance for individuals looking to enhance their financial behaviors and secure a comfortable retirement.**
Breaking News
TDPel Media
This article was published on TDPel Media. Thanks for reading!Share on Facebook «||» Share on Twitter «||» Share on Reddit «||» Share on LinkedIn