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The 34th Annual Retirement Confidence Survey (RCS) from the Employee Benefit Research Institute provides interesting insight into many of the topics discussed in the Forum. About 1200 of both workers and retirees were surveyed.
I’m always a bit suspicious of surveys, but there aren’t other ways to obtain an insight from individuals that I know of.
It’s a mixed bag.
Planning can be improved in several areas, Social Security is not well understood, while it remains a significant source of income. Reading the data you could conclude that retirement is a bit of a struggle, but for most retirees that’s not so as they say they have the lifestyle they expected. This despite, in some areas, they seem to have rejected conventional wisdom.
Workers retired earlier than expected and began collecting Social Security as soon as they retired.
83% of workers with an employer retirement plan say they are interested in using all or a portion of their saving to obtain a guaranteed monthly income stream. I’m with them, that monthly paycheck can’t be beat
Over 30% of workers have taken a loan or withdrawal from their plan to make ends meet or pay off debt. That’s not engouraging. Just 20% of workers are very confident they will have enough money to live comfortably in retirement, but retirees tell a different story.
Only 51% of workers have estimated the income they will need in retirement. Only 48% have reviewed the amount of Social Security they will receive. No wonder they aren’t very confident about retirement income to live “comfortably”. Of course, that’s one of those words with an infinite number of definitions.
A third of workers have less than $50,000 savings and investments and 14% have less than $1,000 – let’s hope that is the youngest (age 25) group of workers surveyed.
Over half of retirees say their overall expenses are higher than expected. 42% days higher for health and dental care and 35% day higher for travel, entertainment and leisure activities. Inflation remains a concern for both workers and retirees.
The good news is seven in ten retirees say they are having the lifestyle they envisioned – I assume what they envisioned is what they desired.
Is 70% good? Not if you are part of the 30%. I’m pretty sure $50,000 plus Social Security will impact the quest for or redefine “desired” lifestyle, but perhaps they have years to grow their wealth.