Great retirement expectations, not great preparations - Apr. 4, 2006

Overconfidence and behavorial finance have a rich and growing history. It might be time to add the idea that we have enough for retirment to that growing list.

From CNN:
EBRI: Great retirement expectations, not great preparations - Apr. 4, 2006:

"...among those in the very confident group, 22 percent said they aren't currently saving for retirement and 39 percent said they have less than $50,000 in savings"

"59 percent of all workers say they'd like to enjoy a standard of living in retirement that is the same or better than the standard of living they have in their working years.

But half the respondents think they can manage that on 70 percent or less of their pre-retirement income.

That doesn't square with financial experts' recommendation that you should plan to live on at least 70 percent of your pre-retirement income. Nor does it square with the 55 percent of present-day retirees surveyed who said they live on 95 percent or more of their pre-retirement income."