These soon to be retired might find a latest survey helpful. The survey of 2,000 people retired within the past two to six years explained that new retired people are a money-worried, cash-strapped group, and reliant on Social Security because they have inadequate retirement savings. Still, they find satisfaction with their new lifestyle. Let's look at a few of the important conclusions.
Key stats and opinions of those questioned
The studied retired people 'had an average home retirement income of $49,000, but a median (half had more, half less) household income of just $34,000. The group is actually equally split between those living much better than in their working years and those living on less. About one in 5 are 'struggling' financially.'
Those surveyed would be the first generation of workers straddling both conventional (described benefit) retirement plans and self-directed 401(k) retirement plans introduced in 1981. Traditional pension plans offer twenty four percent of their retirement savings; earnings from self-directed retirement programs, as well as other purchases and retirement financial savings, accounts for 11 percent. Social Security is by far probably the most essential financial resource, representing forty one percent of retirement savings.'
Most participants 'are worried about finances and the stability of government-funded plans. Forty-one percent are extremely worried they've inadequate retirement savings and will outlive their cash. In spite of these economic concerns, eighty four percent of new retirees say they are 'satisfied' with their new lifestyle situation. Satisfaction increases, however, as retirement savings and retirement savings climbs.
Just 16 % of recent retired people had a official, written retirement plan although the number utilizing expert financial advisors rises dramatically with resources. Fifty-four % of those with net worth more than $500,000 have used a retirement advisor, while just 16 percent of those with $150,000 or less have done so.'
A fifth of participants have a systematic withdrawal plan of their retirement financial savings, and on average, they pull out about six.7 % a yr. At that rate of withdrawal, a retiree's financial savings will be exhausted in approximately 17 yrs, presuming a collection of 40 % shares, 50 percent bonds, and ten % cash at historic rates of return [mentioned by study].'
In contrast to the widespread image of untroubled retired people traveling, studying, and volunteering, their most significant goals are possessing a safe retirement income rather than worrying excessive about cash. Spending more time with members of the family places a distant 4th, accompanied by traveling and pastimes. Recent retired people are not particularly interested in going back to school to learn some thing new. However twenty-seven percent of recent retirees prefer to be at their old job than retired.'
The key point for those planning to retire:
'The money concept carries through on recent retirees 'greatest regrets. Seventy % wish they had more retirement savings and 59 percent wish they'd began economizing earlier.
What was their biggest surprise? It had been 'that they've insufficient retirement savings and high expenditures.' More than one-third want their previous employer or retirement program supplier had done much more to encourage them to save sooner and quicker.'