• Home
  • E-Booklets
  • Pay Less Tax
  • Privacy Policy
  • Cheatsheets
  • Contact Us
  • About us

Retirement Income

New Ways to Get More Retirement Income

  • Retirement Advisors
  • Retirement Insurance
  • Retirement Investing
  • Retirement Living
  • Retirement Planning

Survey Shows Retirement Savings Are Not What Retirees had Hoped

Posted on June 8, 2012 by bobrichards

Those soon to be retired may find a recent survey helpful. The survey of 2,000 people retired within the past two to six years revealed that new retirees are a money-worried, cash-strapped group, and dependent on Social Security because they have inadequate retirement savings. Still, they find satisfaction with their new life. Let's look at some of the key findings.

Key stats and opinions of those surveyed
The studied retirees; had an average household retirement income of $49,000, but a median [half had more, half less] household income of only $34,000. The group is almost evenly split between those living better than in their working years and those living on less. About one in five are "struggling" financially.

Most respondents' are worried about finances and the stability of government-funded programs. Forty-one percent are very concerned they have inadequate retirement savings and will outlive their money. Despite these financial worries, 84 percent of new retirees say they are "satisfied" with their new life status. Satisfaction increases, however, as retirement savings and retirement income climbs.

Those surveyed are the first generation of workers straddling both traditional (defined benefit) retirement plans and self-directed 401(k) retirement plans introduced in 1981. Traditional pension plans provide 24 percent of their retirement income; income from self-directed retirement plans, as well as other investments and retirement savings, accounts for 11 percent. Social Security is by far the most important financial resource, representing 41 percent of retirement income.

Only 16 percent of recent retirees had a formal, written retirement plan although the number using professional financial advisors rises dramatically with assets. Fifty-four percent of those with net worth over $500,000 have used a retirement advisor, while only 16 percent of those with $150,000 or less have done so.

A fifth of respondents have a systematic withdrawal plan of their retirement savings, and on average, they take out about 6.7 percent a year. At that rate of withdrawal, a retiree's savings will be depleted in about 17 years, assuming a portfolio of 40 percent stocks, 50 percent bonds, and 10 percent cash at historic rates of return [stated by study].

Contrary to the common image of carefree retirees traveling, studying, and volunteering, their most important goals are having a secure retirement income and not worrying too much about money. Spending more time with family members places a distant fourth, followed by traveling and hobbies.

Recent retirees are not particularly interested in going back to school to learn something new. But 27 percent of recent retirees would rather be at their old job than retired.

The Key point for those about to retire:
The money theme carries through on recent retirees' biggest regrets. Seventy percent wish they had more retirement savings and 59 percent wish they had started saving earlier. What was their biggest surprise? It was that they have insufficient retirement income and high expenses. More than one-third wish their former employer or retirement plan provider had done more to encourage them to save sooner and faster.

How to Prosper and Thrive In Retirement

For those already retired seeking to improve their finances
  • The 4 most important issues for any retiree and a quick plan to address each
  • The overlooked annuitization of assets to make your money go farther and reduce risk
  • An easy way to save money on health coverage
  • You don’t need to be rich to plan your estate like this
  • A few simple lessons can reduce stress and bring more joy in your retirement year. Stop worrying and learn the simple
  • actions to take.

    You might also like:

    • Average Retirement Savings by Age – How Do You Compare?
      Average Retirement Savings by Age – How Do You Compare?
    • Transition to Retirement - Six Aspects that Help
      Transition to Retirement - Six Aspects that Help
    • Retirement Solutions— Difficult Trends and What You Can Do
      Retirement Solutions— Difficult Trends and What You Can Do
    • Update on Social Security Cash Flow
      Update on Social Security Cash Flow
    • Social Security Office Cheating Retirees
      Social Security Office Cheating Retirees
    • Use Life Insurance in Estate Planning to Treat Beneficiaries Equally
      Use Life Insurance in Estate Planning to Treat…

    Filed Under: Retirement Planning Tagged With: Average Retirement Savings, retirement savings survey

    About bobrichards

    Bob Richards
    Editor | Involved in Various Marketing Positions within the Financial Services Industry

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    Second place winner best retirement blog

    SH award winner SMALL (1)

    Not Enough Savings to Retire?
    Learn Six Ways to Earn Retirement Income (from home)

    You do not need special talents, skills, computer knowledge, etc. We show you multiple ways others are working a few hours a week to generate a comfortable retirement income.

    Download Free Copy

    Latest Posts

    Update on Social Security Cash Flow

    Update on Social Security Cash Flow

    What's the True Cost of Senior Healthcare

    What's the True Cost of Senior Healthcare

    Social Security Office Cheating Retirees

    Social Security Office Cheating Retirees

    Use Life Insurance in Estate Planning to Treat Beneficiaries Equally

    Use Life Insurance in Estate Planning to Treat Beneficiaries Equally

    Estate Financial Planning Has Nothing to Do With Your Wealth

    Estate Financial Planning Has Nothing to Do With Your Wealth

    Categories

    • 401K IRA Roth Withdrawals, Distributions, and Rollovers
    • Annuities for Income
    • Estate Planning
    • Retirement Advisors
    • Retirement Insurance
    • Retirement Investing
    • Retirement Living
    • Retirement Planning
    • Social Security
    • Supplemental Retirement Income
    • Tax Savings
    • Alternative Investments
    • E-Booklets
    • Pay Less Tax
    • Privacy Policy
    • Cheatsheets
    • Contact Us
    • Subscribe
    • Sitemap

    Recent Posts

    • Update on Social Security Cash Flow
    • What's the True Cost of Senior Healthcare
    • Social Security Office Cheating Retirees
    • Use Life Insurance in Estate Planning to Treat Beneficiaries Equally
    • Estate Financial Planning Has Nothing to Do With Your Wealth

    The Retirement Income Blog

    25A Crescent Drive #1508
    Pleasant Hill CA 94523
    T: 844-887-4131
    E: [email protected]

    © 2018 Retirement Income