More Disengaging from Retirement Planning

Nationwide on Tuesday released findings from its research that show that a significant number of people who were actively planning for retirement before the recession are disengaging from the process.

The insurer found a 60 percent decline in the number of respondents who agree with the statement that creating a retirement income source is important, and a 25 percent decline in the number of those who say they would seek advice before making investment decisions.

A total of 1,143 respondents were polled online in 2007 and 2009. Nationwide commissioned Northstar to conduct the survey in August and September.

"We're really looking at a one-two punch right now," said Paul Ballew, senior vice president of consumer insights and analytics at Nationwide, in a news release. "We're seeing the number of disengaged households increasing by more than a third. Many of these individuals felt the brunt of the economic downturn to a greater degree than others and have moderated their expectations
toward retirement."

Also on Tuesday, Boston College's Center for Retirement Research unveiled an update of the retirement Readiness Index -- funded by Nationwide -- which show that 51 percent of Americans are not ready to retire at the age of 65. This compares to 44 percent in 2007 and 43 percent in 2006, the year that the NRRI first came out.

"Our research shows that the financial turmoil has driven up the share of households 'at risk' of being able to maintain their standard of living in retirement," said Center Director Alicia
Munnell in the release.

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