Golfers $1 million shy of a comfortable retirement, according to new survey
COLUMBUS, Ohio, Sept. 7 /PRNewswire/ -- Nearly one-quarter of recreational
golfers would rather win the Masters than receive $1 million toward their
retirement, according to a new survey released today by Nationwide Financial
Services, Inc. and The Golf Digest Companies.
Yet, that windfall is what many need to shore up a $1 million retirement
shortfall. Golfers, on average, have saved $289,000 and expect to need
$1.3 million to retire comfortably. To hit that goal, the average golfer needs
to triple his or her savings before retirement. This might be doable for
someone in their 20's and 30's but more difficult for someone nearly 50 years
old - the average age of golfers surveyed.
While golfers on average have saved or invested nearly 75 percent more
than non-golfers, they also expect to need more income in retirement.
According to industry research, golfers' savings may fall surprisingly short
of their expectations.
"This survey demonstrates the greater effort golfers spend on their game
versus planning for their future," said Mark R. Thresher, president and COO,
Nationwide Financial. "While golfers tend to be more prepared than non-golfers
when it comes to retirement, it's clear they need to save much more to reach
their retirement goals - and that's something they have in common with the
majority of non-golfers."
Other survey findings show that golfers may have their heads in the sand
when it comes to retirement preparation.
- 94 percent of golfers are aware of the areas of their golf game that
need improvement, whereas only 45 percent know which areas of their
savings and investment strategy need similar treatment
- 85 percent of golfers know the score of their latest round of golf and
75 percent know their golf handicap - but only 52 percent know the
current value of their portfolio
- 74 percent claim the amount of money they spend on golf has increased
as they have aged, yet only 54 percent can say the same for their
retirement savings
Retirement by the Numbers
According to the survey, 70 percent of golfers believe they are currently
saving or investing enough for retirement. On average, golfers said they will
need 64 percent of their current annual income in retirement. However, most
industry studies indicate that 80 percent of current income is a more
realistic expectation to maintain a present lifestyle in retirement, Thresher
said. Looking at the average golfer surveyed, the retirement savings goal
should more likely be around $1.5 million, not the $1.3 million they are
currently saving toward.
"Golfers, like the rest of Americans, aren't immune to the danger of
overconfidence when it comes to retirement planning," said Keith Millner,
senior vice president of In-Retirement Markets, Nationwide Financial. "Many
continue to have unrealistic views of how much money they'll need in
retirement and lack strong plans to accomplish their financial goals."
Non-golfers face a similar predicament. Their average savings are $167,000
with a retirement goal of $1 million. The average non-golfer surveyed, who is
slightly younger at nearly 47, will need to quadruple his or her savings to
meet that goal. That figure still will be short of the $1.2 million they'll
likely need.
Non-golfers are slightly less confident of their retirement plans, with 61
percent believing they are currently saving or investing enough for
retirement. In addition, non-golfers, on average, predict they'll need 61
percent of their current income in retirement - nearly 20 percent lower than
what the industry believes to be realistic.
Nationwide has developed an Action Plan worksheet to help golfers and non-
golfers alike close their retirement gaps. It's available at
http://onlinepressroom.net/nationwide/newsroom/. The Action Plan inquires
about current income and savings, pension and Social Security expectations,
and time until retirement, and it uses that information to establish a
retirement savings goal. It also identifies how much money needs to be
invested each year to meet that target.
"It's never too late to get retirement planning back on track," Millner
said. "A great place to begin is to seek the advice of a financial
professional to discuss your retirement goals and to determine your risk
tolerance."
Nationwide's involvement with golf goes beyond this survey. Nationwide
Financial's parent company, Nationwide, is sponsor of the Nationwide Tour.
The tour supports the dreams of tomorrow's golf stars and has produced some of
the game's top players, including Ernie Els, Jim Furyk and David Toms.
About the Survey
The Nationwide/Golf Digest telephone survey was administered by The Golf
Digest Companies Research Resource Center of 808 not-yet-retired adults
between the ages of 18 and 65 from June 30, 2005, to July 6, 2005. The
parallel samples included 400 golfers and 400 non-golfers from across the
United States. In theory, with probability samples of this size, one could say
with 95 percent certainty that the results have a statistical precision of
+/-4.9 percentage points for the survey.
About Nationwide Financial
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded company
based in Columbus, Ohio, provides a variety of financial services that help
consumers invest(1) and protect their long-term assets, and offers retirement
plans and services through both public- and private-sector employers.
It's part of the Nationwide group of companies, which offers diversified
insurance and financial services. The group is led by Nationwide Mutual
Insurance Company, which is ranked No. 99 on the Fortune 100 based on 2004
revenue(2). For more information, visit http://www.nationwide.com.
About The Golf Digest Companies
The Golf Digest Companies is an independent unit of Advance Magazine
Publishers, Inc., an Advance Publications company, and includes Golf Digest,
Golf World, Golf For Women, Golf World Business, Golfdigest.com, Golf Digest
Research Resource Center, Golf Digest International, Golf Digest Sports
Marketing, the Database of Golf in America, Golf Digest Schools, Golf Digest
Licensing & Publishing and The Wrenfield Group, the second largest benefactor
of the Susan G. Komen Breast Cancer Foundation.
(1) Nationwide Investment Services Corporation, member NASD. In MI only:
Nationwide Investment Svcs. Corporation.
(2) Fortune Magazine, April 2005
Contacts:
Eric Hardgrove (614) 677-8516
hardgre@nationwide.com
Shelly Hoffman (614) 677-3551
hoffmas2@nationwide.com
SOURCE Nationwide Financial Services, Inc.
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Related links:
http://www.nationwide.com
http://onlinepressroom.net/nationwide/newsroom
Company News On-Call:
http://www.prnewswire.com/comp/607050.html
CONTACT:
Eric Hardgrove, +1-614-677-8516, or
hardgre@nationwide.com, or Shelly Hoffman, +1-614-677-3551, or
hoffmas2@nationwide.com, both of Nationwide
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