Economic Downturn Puts Strain on Already Insufficient Retirement Savings
63 percent of Americans completely stopped contributing to their retirement plan
OMAHA, Neb., Oct 28, 2008 (BUSINESS WIRE) -- A new survey conducted by Opinion Research Corporation on behalf of TD AMERITRADE Holding Corporation (NASDAQ: AMTD) has found that only about half (54 percent) of Americans polled say they are currently investing in a retirement plan.
Of those polled, 1 in 3 (34 percent) people say they currently have less than $50,000 in investable assets -- this includes senior citizens. Only 21 percent of those polled indicated they have $50,000 or more in investable assets. Yet, when asked if they plan to personally contribute more to their future retirement given the potential changes in Social Security nearly half (43 percent) answered yes.
Financial strain due to the economic downturn was cited by half (50 percent) of those who say they have reduced or stopped contributing to their retirement plan. Unemployment (32 percent) and healthcare costs (25 percent) were also key factors cited as affecting their ability to contribute to their retirement plan.
"While most Americans are tightening their belts by cutting back on spending," said Diane Young, TD AMERITRADE's Director of Retirement and Goal Planning, "reducing retirement plan contributions should always be the last resort as the power of compounding quickly fades away as time passes."
When asked by what percentage they have reduced the amount they contribute to their retirement plan, or have they stopped contributing completely, 35 percent say they have reduced their retirement plan contributions; 14 percent claim have cut their contributions back by 5 percent to 20 percent and as many as 6 percent have reduced their contributions by 21 percent or more. Sixty-three percent indicated they have stopped contributing completely.
Interesting, nearly 1 in 4 (22 percent) respondents ages 35 to 44 years indicated that they have stopped or reduced their retirement plan contributions, more than any other age group.
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About TD AMERITRADE Holding Corporation
TD AMERITRADE Holding Corporation, through its brokerage subsidiaries,(1) provides a dynamic balance of investment products and services that make it the investment firm of choice for millions of retail investor and independent registered investment advisor (RIA) clients. Listed by Forbes as one of America's best big companies, the Company offers a full spectrum of investment services, including a leading active trader program, intuitive long-term investment solutions and a national branch system, as well as relationships with one of the largest independent RIA networks.(2) The Company's common stock trades under the ticker symbol AMTD. For more information, please visit www.amtd.com.
About Opinion Research Corporation
Opinion Research Corporation, an infoUSA company, has offered innovative solutions to the toughest market research challenges of clients worldwide since 1938. The firm has been conducting national, speech reaction, state and flash/overnight polls for CNN since April 2006. To learn more, visit www.opinionresearch.com.
These results are based on a telephone survey conducted among a random sample of 1,005 adult Americans. The survey was conducted September 11 -- 14, 2008 by Opinion Research Corporation's CARAVAN omnibus on behalf of TD AMERITRADE. The margin of error for the total sample is plus or minus three percentage points. Opinion Research Corporation and TD AMERITRADE are separate, unaffiliated companies and are not responsible for each other's products and services.
(1)TD AMERITRADE, Inc., member FINRA (www.FINRA.org) /SIPC (www.SIPC.org), receives clearing and custodial services from TD AMERITRADE Clearing, Inc., member FINRA/SIPC. TD AMERITRADE, Inc. and TD AMERITRADE Clearing, Inc. are subsidiaries of TD AMERITRADE Holding Corporation.
(2)More info on the Forbes award is available at www.forbes.com/platinum.
SOURCE: TD AMERITRADE Holding Corporation
TD AMERITRADE Holding Corporation For Media: Sandra Kelder, 201-369-8714 Corporate Communications sandra.kelder@tdameritrade.com or For Investors: Jim Frawley, 201-369-8779 Investor Relations james.frawley@tdameritrade.com
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