Only 17% of pre-retirees – age 55 or older and still working full time – are “very confident” their monthly income will sustain their desired retirement lifestyle. Only 16% report they are “very confident” they have enough assets to meet retirement objectives.
Those that could not say they were very confident have the following concerns:
- 54% said unexpected lifestyle changes
- 45% said negative stock market fluctuations
- 28% said confusion over retirement products
- 28% said a lack of information needed to assess their current situation
Some of the possible expenditures that pre-retirees did not account for in their retirement savings:
- 66% did not figure market fluctuations or personal debt repayment needs
- 53% did not calculate the tax impact on retirement savings
- 47% did not account for inflation
Illness was another factor that many did not consider, as only 33% of those surveyed expect to spend more than 20 years in retirement:
- 81% did not factor for parental illness
- 54% did not factor for personal illness
- 53% did not factor for spousal illness
Recent market fluctuations have given some reason to worry as only 25% describe themselves as “very knowledgeable about their retirement cash flow management needs” and 36% have not changed their expectations or cash flow requirements.
Additionally, 23% are managing their investments differently, but recognize they will have less money for retirement and only 8% are actively managing their investments to attempt to reach their original goals.
When asked what they would have done differently:
- 49% become better educated on retirement products and services
- 46% developed a better budget for retirement spending
- 46% started planning sooner
- 40% taken advantage of employer-sponsored programs
- 34% purchased more guaranteed return products
- 31% sought counsel from a financial advisor
The results are based on 275 phone interviews with adults age 55 and over conducted by RoperASW in the fall of this year. Pre-retirees accounted for 43%.
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