8 surprising truths about retirement

This post comes from Renee Morad at partner site Money Talks News.

This week is National Save for Retirement Week, an educational campaign to raise public awareness about the importance of long-term retirement planning. The program, created by bipartisan congressional action, encourages Americans to utilize retirement savings and investment plan strategies. The week also encourages individuals to reflect on their current financial situations and their potential for a secure retirement. 

With that in mind, here are some surprising statistics and insights on where Americans stand today, as well as their expectations, fears and hopes about retiring.

1. How much money do we need to retire? There's no real rule of thumb.

There are varying estimates of how much money an individual needs to retire. One guideline suggests $1 million, while another recommends you save 10 times your last annual salary. But there's no one-size-fits-all approach, and you'll have to consider a variety of factors to determine what's best for you and your family -- like your age and current annual income, desired retirement age and income, and expected annual pension and Social Security payments. Then, of course, your personal spending habits weigh in.

Plenty of retirement calculators are available online. Working with a fee-only financial adviser can also help determine how much money you'll need.

2. Half of Americans aren't saving for retirement.

According to a Life Insurance and Market Research Association study, 49% of Americans say they aren't contributing to any retirement plan. Those least likely to save for retirement: individuals between ages 18 and 34.

What are Americans doing instead? In a survey by Wells Fargo, planning a home remodeling and planning a vacation ranked higher on the list of priorities within the past year than planning for retirement (which ranked third).

3. 80 is the new retirement age?

Apparently 80 is the new 65 for many middle-class Americans when it comes to retirement. One-third of survey respondents plan to delay retirement till age 80 or older, according to a Wells Fargo study of 1,000 adults with income less than $100,000. That's up from 25% who planned to retire at age 80 in last year's survey.

A study by My New Financial Advisor, a service that connects clients with advisers, suggests the average baby boomer will retire at age 75. Some of the top factors preventing an earlier retirement: loss of income, insufficient savings and low returns.

4. The majority of middle-class Americans aren't confident about the stock market.

According to the Wells Fargo study, 70% of middle-class Americans aren't comfortable investing retirement money in the stock market. When survey respondents were asked what they'd do if given $5,000 to invest for retirement, only 24% said they'd invest in stocks -- compared with 40% who would choose a CD or savings account and another 22% who would invest in gold or other precious metals.

5. Women are less engaged in retirement planning.

Women are more concerned about retirement risks than men are, according to a Life Insurance and Market Research Association study, but they're less likely to do anything about it.

Only one-third of women are actively involved in their family's retirement planning, compared with nearly half of men. Also, 32% of women admit they do no retirement planning at all.

6. More Americans have tapped retirement funds.

By 2010, 21% of Americans who could tap their 401k's for loans had done so, the highest percentage since 1996, according to the Employee Benefit Research Institute. The average loan size was 14% of the remaining account balance.

7. Employers are more willing to offer 401k plans, but many employees don't care.

About 95% of companies are back to matching 401k plans, but only 30% of employees are taking advantage of this, according to a survey by the nonprofit Plan Sponsor Council of America.

The reality: Many individuals need their current income for living expenses and can't afford to put it away.

8. Forty percent of Americans fear lack of retirement funds.

Nearly four in 10 Americans are worried they won't have enough money saved to retire, according to a Pew Research Center survey. The fear is more prevalent today than it was at the end of the Great Recession in 2009.

Thirty-somethings are among the most worried: Half of adults age 36 to 40 are worried they won't be able to save enough to sustain a comfortable retirement, the Pew survey said. This age group was reportedly more concerned than those near or at retirement age.

More on Money Talks News and MSN Money:

• 8 Social Security myths busted
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• 5 easy steps to greater financial security 
• 401k perks return, but savings lag
• Smart Spending on the go: Get our app for Android or iPhone
• How to avoid a depressing retirement