Americans Overconfident about Retirement Savings, Even as They Face Financial Uncertainties, According to Survey; RolloverSystems Study Reveals Most Americans Want Control of Retirement Savings, Believe They Are Actively Engaged.

CHARLOTTE, N.C. -- Experts Suspect Over-Reliance on Personal Real Estate May Be the Culprit for Massive Retirement "Under-Savings Rate"

A recent study by RolloverSystems suggests there is a profound disconnect between Americans' confidence level and their behavior when it comes to retirement savings, even as they register overwhelming uncertainty about having enough money to retire comfortably.

According to the survey, nearly half of respondents (46%) said they do not participate in their company's retirement savings plan because they feel they "save enough" on their own. In direct contradiction, only 18% said they will definitely have enough money saved to live comfortably in retirement. Industry watchers suggest that escalating real estate values in the last ten years are to blame for this strong sense of confidence.

"Americans say they know how to save appropriately for retirement, yet they still aren't sure they'll be ready," said Joe Coyne, Senior Vice President at Wachovia. "This overconfidence may well stem from a belief that Americans' escalating home values are their retirement savings. However, relying on real estate alone isn't the smartest way to save."

Conducted in early 2006, the study was administered by Phoenix Marketing International, a research firm specializing in the financial services industry, and included in-depth interviews examining the public's behaviors and attitudes towards retirement savings. Consumers between ages 21 and 64, plan sponsors and plan providers were asked a series of similar questions to gauge each group's response.

Overall, results suggest that consumers want to take charge of their own retirement savings. Nearly 60% of eligible consumers rolled their money over from a former employer's retirement plan, and they cited control as the top reason. What's more, consumers feel they are actively engaged in reviewing and rebalancing investments in their current retirement plans to reflect their goals (60% say they do this at least several times per year compared to 5% who say they never do). For advice, more than half of consumers (54%) would turn to a financial advisor rather than to friends and family.

"The data suggests Americans are not being realistic about their retirement savings plans," said Reginald Bowser, CEO of RolloverSystems, whose company facilitates independent automated retirement account rollovers. "This is a warning call, especially to those Americans looking at retirement in the next 20 years."

While consumers believe they are actively engaged in their retirement savings, industry data, financial experts and conventional wisdom suggest this isn't the case. In numerous instances, data has revealed that the baby boomers currently entering retirement age are not yet ready to retire and do not plan to do so in the near future. With younger workers switching jobs every few years, opening fewer retirement accounts and saving even less than their predecessors, it is reasonable to conclude people are not as savvy about retirement savings as they report they are.

"There's either a knowledge gap or a severe shortfall putting knowledge into action," said RolloverSystems CEO, Reginald Bowser. "Most people think they know the best way to save, yet clearly they aren't prepared for retirement. It's part of RolloverSystems' mission to empower people with easy-to-use tools so they can save smartly. We connect consumers with financial professionals to help educate them and ensure they're ready for retirement."

One of the smartest ways for people to stay on track for retirement when they change jobs is to roll over their 401(k) balances to an IRA. To control costs, employers have to limit the investments available in their retirement plans, so IRAs generally provide an expanded list of mutual funds and other investments. RolloverSystems was created to help make it as easy as possible for consumers to choose an investment provider and transfer their money directly to a Rollover IRA.

Retirement Savings Savvy - Additional Noteworthy Findings

    Participating in a company's retirement savings plan

    --  Saving on their own:

        --  Nearly half (46%) of people don't join their company's
            retirement savings plan because:

            --  they have too many expenses and there's not enough
                room in the budget.

            --  they say they save enough on their own, so there's no
                need.

    --  Options are key, but data isn't:

        --  46% of respondents said they'd be more likely to join
            their company's retirement savings plan if it had better
            investment options.

        --  Only 12% of consumers say they would be more likely to
            join a company's retirement savings plan if they had more
            or better information.

    Rollover Behaviors

    --  Why rollover:

        --  The majority of consumers (43%) say they roll over their
            retirement plan to an IRA because they want control of
            their funds.

        --  Of those who haven't rolled over accounts, nearly half
            (46%) said they didn't because they were happy with the
            returns of their 401(k) investments.

        --  Thirty-six percent of consumers look for low annual fees
            and a recommendation from their financial advisor.

About RolloverSystems

RolloverSystems is the leading provider of outsourced retirement plan rollover services for financial institutions, plans service providers, and plan sponsors. The company operates the only independent, objective platform that matches eligible retirement plan participants with a network of top-tier financial institutions offering rollover IRAs, including Fidelity Investments, Wachovia, Charles Schwab, American Century, JPMorgan Chase and Neuberger Berman. For more information on RolloverSystems, please visit www.rolloversystems.com or www.rollovermarket.com.