We think of faculty from colleges and universities as the best-educated and smartest people in a room. However, a new study suggests that they might be the least knowledgeable professionals when it comes to preparing for retirement. According to Fidelity Investments’ Higher Education Faculty Study, while 82 percent of pre-retiree college professors say that they have enough for retirement, only 17 percent have actually taken the measures to make sure that this is true.
“Having confidence in their retirement savings may result in faculty members who are approaching retirement age not taking the time to create a retirement income plan, leaving them without a strategy to convert savings into lasting income,” said Rick Mitchell, Fidelity’s executive vice president of Tax-Exempt Retirement Services, in a press release. “It’s critical that pre-retirees understand how long-term savings can be transitioned into retirement income.”
Despite the lack of preparation, older faculty members said that they wanted some form of financial guidance. Specifically, they said they needed help with:
- Assessing an overall financial plan for the future.
- Choosing specific areas to put their money.
- Developing a retirement income plan.
While the study focused on the saving habits of older Americans, the Fidelity researchers also noted in their report that younger faculty members were not faring much better. Only 17 percent had any sort of retirement plan in place and 61 percent of them reported that they often worried about their financial situation.
No matter your age, you should have a plan in place to keep your family’s financial future safe. Ideally, you should have savings, investments and a life insurance policy with adequate coverage. For a term life insurance quote, use our online quote engine to learn about which policies may fit you best.