San Diego is certainly well-known for its great weather, technology and life sciences centers, and world-class zoo. But who knew San Diego was also home to some of America’s most savvy retirement savers?
A new report from Ameriprise Financial measured the retirement readiness of people in 30 of the nation’s largest metropolitan areas, and San Diego ranked an impressive No. 2, up from No. 6 a year ago.
Only people in the Hartford-New Haven area of Connecticut ranked higher on the list.
“The focus San Diegans are placing on preparing for retirement is paying off," said Philip Harrison, an Ameriprise adviser in San Diego. "Many residents have created retirement plans and are saving for this goal even as they’re faced with local economic woes. But worry over potential tax changes and the impact these may have on their retirement is prevalent.”
The survey found 48 percent of San Diego residents say they feel on track for retirement. That compares favorably with the national average of 37 percent.
Even more impressive, 33 percent in San Diego have already determined how much income they’ll need in retirement, well above the 23 percent nationwide who have also made that calculation.
It comes as no surprise, considering the levels of economic stress that many families and individuals have to deal with these days; retirement planning is not a top priority. A nationwide poll by BlackRock finds the majority — 58 percent — of workers today are not saving the maximum amount permitted by their 401(k) employer-sponsored retirement plan.
“Clearly there is more work to be done in motivating workers to make the most of the savings potential of their defined contribution benefit," said Chip Castille, of BlackRock. "Sufficient savings is the single most important factor in leading to a comfortable life in retirement.”
The maximum contribution level to a 401(k) in 2012 is $17,000. It increased this year from $16,500, the first increase in four years. In addition, workers over the age of 50 can make an additional “catch-up contribution” of $5,500.
Yet another retirement survey from PNC Financial Services finds that Americans with $100,000 or more in assets say they are on target to achieve their retirement goals. When they were asked the most important retirement-related decisions they had made in their lives, 47 percent said “living within my means,” while 35 percent said they “started saving from an early or at a young age.”
“Clearly, the lesson is work and save more now while you are in your prime earning years so that you have the option of not working at all during retirement," said PNC’s Stephen Pappaterra. "A pattern of making good decisions, planning and sticking to the plan is a theme repeated throughout the survey.”
The Investment Company Institute reports total U.S. retirement savings were $18.9 trillion as of March 31, 2012. That represents an increase of 6.3 percent from December 31, 2011.
Of that amount, the biggest chunk of retirement savings is in individual retirement accounts with $5.2 trillion as of the end of the first quarter of 2012. Defined contribution plan assets total $4.8 trillion, and government pension plans held $4.7 trillion.
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