One of the recurring themes in my column is the importance of saving and investing for the biggest personal finance challenge: a comfortable retirement. So I was keenly interested to digest the results of a recent survey on the topic of retirement from Charles Schwab and Age Wave, a consulting firm focused on the aging population.

The survey, conducted in the spring of 2008, asked nearly 4,000 American adults from four generations about their hopes, fears and expectations regarding retirement. The findings provide interesting insights into the retirement-related thought processes of Americans of every generation — and I think the findings should be a wake-up call to the institutions that serve them: employers, the financial services industry and the government.

A NEW PERSPECTIVE ON "RETIREMENT"

One of the most powerful messages to emerge is how Americans are rethinking — or reinventing — retirement. A generation ago, retirement meant simply an exit from the working life, but today's workers view it differently. More than half of those surveyed saw retirement as "an opportunity for a new, exciting chapter in life." They might like to work less, but they don't want to stop working entirely, and many see retirement as an opportunity to try a second career or pursue a personal passion. An astounding 71 percent of respondents, who weren't retired, indicated they wanted to continue working when they reached retirement age.

This is good news for several reasons. First, working gives people a sense of purpose and value; it helps them maintain a sense of community and reinforces their self-esteem. On a more practical level, employment also generates income — and frankly, a lot of people are going to need that income when they reach the traditional retirement age. Most Americans haven't saved enough to retire with the confidence of maintaining their lifestyle for 20 or 30 years.

RECOGNITION OF THE NEED FOR SELF-SUFFICIENCY

My second big take-away from the "Rethinking Retirement" survey is that more Americans recognize that the onus is on them when it comes to financing their retirement. Survey respondents say they'll need to have at least $500,000 saved to enjoy a comfortable retirement, which is twice the median net worth of today's pre-retirees. That's especially concerning when you realize that half a million dollars is probably at the low end of what will be required to sustain a retirement.

It seems that all generations realize the old model — retiring on the combination of an employer-provided pension, Social Security benefits and personal savings — isn't necessarily realistic anymore. Few companies offer a traditional (defined benefit) pension, though most do offer 401(k) plans. And many respondents have concerns about the future of Social Security. For example, one-third of Generation Y (those aged 13 to 31) doesn't expect to receive any benefits from Social Security. That's probably overly pessimistic, but there is still a belief that we shouldn't be too dependent on Social Security. (The Social Security Administration suggests that the average American will get 40 percent of his or her retirement income from Social Security benefits.)

EAGER TO LEARN BUT LOOKING FOR GUIDANCE

Most people, in other words, are fully conscious of the reality that no one is going to fund their retirements for them. They're also aware of the possibility of being "sandwiched" between generations: Baby boomers raising their own kids while taking care of aging parents, for example. Four out of 10 respondents anticipate having to support their parents financially, and a surprising 26 percent believe they'll have to support a sibling financially. These potential responsibilities add to some already complex financial challenges.

One of the more positive findings illustrated that people are eager to help themselves, knowing they need tools and education to get the job done. A mere 3 percent of respondents across all generations believe that Americans are "a financially responsible population" — and 95 percent say that personal finance and financial management should be a standard part of our high school curriculum (a position I've advocated for years).

But surveyors also say they would like assistance from other sources. People want their employers to help them with personal finance, with more guidance and options for their 401(k) plans. People would like their financial institutions to step up their educational capabilities and to approach financial management more holistically — not "What stock do I buy now?" instead "What should I be doing to prepare for life's financial challenges, particularly retirement?"

"Retirement is a huge challenge, and people are aware of how much work lies ahead." That's the message I took away from this survey. What I found pleasantly surprising, however, is how optimistic Americans seemed about their retirement and their future; they are ready to take on the challenge of ensuring it lives up to their expectations. Americans are rethinking what retirement means and what it takes to have a successful, comfortable one.

We've all got some work to do, individually and collectively, but the motivation is there. How can we respond? And perhaps more importantly, how will you react?

Carrie Schwab Pomerantz is Chief Strategist, Consumer Education, Charles Schwab & Co., Inc., Member SIPC. You can e-mail Carrie at askcarrie@schwab.com. To find out more about Carrie Schwab-Pomerantz and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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