Seventy-eight percent of investors think they will have enough money to maintain the lifestyle they want in retirement, up from 69% in 2014, according to the Wells Fargo/Gallop Investor and Retirement Optimism Index. In fact, 31% feel highly confident, up from 26%, and those who are not confident has fallen from 31% to 22%.
A big factor that helps people attain this confidence is having a written plan; 43% of those with a written plan are highly confident they are headed towards a comfortable retirement, whereas 23% of those without a written plan feel highly confident.
In step with this, only 36% worry they will outlive their savings, down from 46%. This fear is higher among non-retirees (39%) than those who have reached retirement (28%).
“Although we are experiencing rising account values and optimism, it’s important not to underestimate the importance of a thoughtful strategy and a written plan not only for saving and investing, but also for drawing down funds in retirement given the complexities of longevity, taxes and when to begin Social Security benefits,” says Joe Ready, head of Wells Fargo Institutional Retirement and Trust.
Only 28% of non-retirees have thought about when would be a good time to retire. However, this rises to 39% of those age 50 and older. Among those who have retired, 52% wish they had started thinking about when to retire earlier than they did.
“The actual age you retire is a really important factor in determining your monthly income and how long it will last,” Ready says. “The sooner you start to plan your retirement age, the more you can control while you still have a long runway ahead of you to make adjustments to your strategy.”
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