A new study by Fidelity Investments and its clearing arm, National Financial, reveals that despite the fact that seven out of 10 people fear they won't have enough money to live on in retirement, only 46% of them are using an IRA for retirement savings.
What's more, despite the fact that the Pension Protection Act provides permanency to IRA contribution limits, only 7% of non-IRA holders plan to open an IRA before the April 16 tax deadline, the study found. Even current IRA holders aren't taking full advantage of their existing accounts, the study says, with just 37% contributing money to these plans in 2006, and only 16% saying they are "extremely/very likely" to contribute before the April 16 tax filing deadline.
Lizanne Capper Campbell, senior VP at National Financial, said in a statement announcing the study's findings that "advisors can play a crucial role in helping Americans understand the benefits of an IRA and how these vehicles can help address their retirement funding concerns."
