Here are some of the findings about most pressing issues, retiring later, retirement planning, and calculating vs guessing how much is needed for retirement from the 22nd annual Retirement Confidence Survey, from a recent Retirement Income Industry Association (RIIA) presentation. The survey originated in 1991.
Job Uncertainty Top Concern for Workers and Retirees
Of the workers and retirees surveyed, 42% and 41% of the two groups, respectively, listed job uncertainty as their most pressing financial issue, suggesting that for many, working in retirement to augment income from savings is a real need. Just 2% of both groups listed saving and planning for retirement as pressing issues.
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The number of workers who expect to retire at 70 or older has increased to 26% from 16% five years ago, and 12% ten years ago—a 63% five-year and 117% ten-year increase. The total expecting to retire after 65 jumped to 44% from 30% five years ago and 23% ten years ago, almost doubling in ten years.
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Retirement Income Planning
Only half the workers over 55, in the heart of the pre-retirement age range, say they have tried to figure out how much money they will need in savings for a comfortable retirement.
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Of the workers who have tried to determine how much they will need to save to retire comfortably, 42% say they guessed, 21% asked a financial advisor, and 21% did their own estimate.
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Retiring later and working during retirement to augment savings, along with cutting expenses and converting savings into a guaranteed lifetime income stream, are the chief strategies for those who are under-funded in retirement.
If you think you may be under-funded and are approaching or have just retired, it’s not too late create a retirement plan and begin managing your retirement as beneficially as possible. Small changes can make a big difference. Contact me or talk to a fee-only advisor who specializes in retirement income management.