A recent survey of Americans showed that a majority of respondents (52 percent) said they need a clearer picture of the income they will need to maintain the lifestyle they expect in retirement. Yet an even greater number, 54 percent, said they did not currently have a plan that identifies those needs, the income that their retirement savings can be expected to produce or how to generate the additional income needed to close any gaps.

The initial findings in the poll of 1,496 Americans, conducted for Putnam Investments, underscore the growing recognition that many Americans fear they will not have the money necessary to generate the income they will need in retirement and are unsure what steps to take to close that gap. However, contrary to public perception, respondents still had confidence in the markets. The majority of those polled (75 percent) said they did not believe that their investment portfolio had been permanently damaged by the market collapse in 2008, and 66 percent of respondents said they continue to invest in equities.

“Americans who are still in the workforce clearly have been shaken by the economic turmoil of the past several years, and they are understandably concerned about where that leaves them as they approach retirement. Understandably, they are seeking help and solutions to secure the income they will need in retirement,” said Putnam President and Chief Executive Officer Robert L. Reynolds at the firm’s event. “However, they haven’t lost faith in the markets or in the resilience of the American economy.”

Americans are highly concerned about how they will fare in retirement

Fewer than one-quarter of respondents (23 percent) classified themselves as “highly knowledgeable” when it comes to determining how their savings will translate into income in retirement; similar numbers of those who participate in defined contribution plans (24 percent) consider themselves to be highly knowledgeable.

A significant need for information

More than half of those polled (52 percent) said they needed a clearer picture of how much income they will need in retirement, and those enrolled in defined contribution plans (61 percent) echoed those sentiments. Forty-four percent said they were unsure about what type of investments are best to generate income in retirement, and 47 percent of those in defined contribution plans said they were unsure.

“The natural fears and concerns that permeate the thinking of most investors saving for retirement are further pronounced given the extreme market chaos witnessed in 2008. Any time you go through a period of great economic stress, as we’ve been through, all assumptions and conventional wisdom are thrown into doubt,” said Carney. “This creates a tremendous need to fill that vacuum with solid financial guidance that will minimize the doubt and confusion. While investors will freely admit that they have a long way to go to ensure secure retirements, their awareness can spur them to more closely examine their income needs and take steps to close any gaps.”