Twin Cities Named Most Retirement-Ready Metro
People in the Minneapolis-St. Paul metro area are more prepared for retirement than those from any other city in the United States, according to data released Tuesday by Minneapolis-based Ameriprise Financial, Inc.
The “New Retirement Mindscape 2010 City Pulse Index”-which bases its findings on survey responses from more than 10,000 people between the ages of 40 and 75-found that Twin Cities residents are setting aside money for retirement and are planning activities for when they have retired.
The Twin Cities beat out Raleigh-Durham, North Carolina, which ranked second, for the top spot. According to the study, residents in the Minneapolis-St. Paul metro approach retirement with more confidence-an indication that they have “higher levels of emotional preparation.”
The Twin Cities scored well above the national average on virtually every measure related to retirement readiness. A total of 83 percent of respondents from the area report that they have set aside money for retirement-while the national average is only 69 percent. Nearly half-48 percent-of respondees from the Twin Cities state that they are “on track” for retirement, and one-third are “very confident” about their future with respect to finances.
Of the 30 metro areas included in the study, Los Angeles fared the worst, followed by Indianapolis and Orlando, Florida. The study's findings suggest that immediate or short-term financial concerns have taken precedence over retirement planning in those cities, likely as a result of the economic downturn.
“Our latest research allows us to take the pulse of each major metropolitan area to see where there is alignment-or significant discrepancies-in how people have planned for and feel about retirement,” Craig Brimhall, vice president of retirement wealth strategies at Ameriprise Financial, said in a statement. “In some cases, local economic conditions have had such a substantial impact on people that their levels of preparation and confidence appear a bit out of sync.”
Ameriprise Financial offers diversified financial services. It commissioned the survey, which was conducted online by New York-based Harris Interactive, Inc., between September 28 and October 11.