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WEST DES MOINES — A recent survey of retirement account investors at colleges and universities shows even professors and researchers sought out investment advice as the stock market downturn began draining retirement accounts.
The TIAA-CREF Institute surveyed 1,002 higher education employees between the ages of 50 and 70 during April and May. The survey found that 60 percent of those surveyed said they have sought out retirement planning advice.
"The concerns of employees nearing retirement regarding advice on investing savings, paying for health care expenses as they grow older and how to draw income from savings for retirement underscores the importance of having a personalized long-term plan and sticking to it," said Maliz Beams, TIAA-CREF's head of client services.
The top reasons for seeking advice were how to invest their savings, cited by 89 percent, and how much should be saved, cited by 60 percent. Half of the respondents said they inquired about how to draw income from savings in retirement.
Two-thirds of those surveyed expressed concern about outliving their savings and about choosing the best way to draw income to live on from their savings.
Seventy-one percent of those surveyed said they are concerned about being unable to afford good health care in retirement.
Research has shown that a person retiring today at age 65 would need about $300,000 in savings to cover lifetime medical expenses to age 90.
While most of those surveyed said they have thought about how they will pay for deductibles, co-payments, premiums and co-payments in retirement, only 23 percent feel very well prepared to meet such expenses. Sixty-three percent said they would be very or somewhat likely to contribute to a tax-preferred savings account specifically designed to pay for health expenses in retirement.
The random telephone survey had a statistical margin of error of plus or minus 3 percent.
TIAA-CREF is the leading provider of retirement services in the academic, research, medical and cultural fields with $374 billion in combined assets under management as of June 30.
