Retirement Report: Less Than a Third Seeking Professional Guidance Despite Low Confidence in Retirement Planning

Retirable, the “holistic” retirement solution, announced the release of its first ‘State of Retirement’ study, which sums up how more than 2,000 U.S. individuals nearing and in retirement plan “to spend their time, money, and resources.”

Known for its holistic approach to retirement alongside the ongoing care of an advisor, Retirable is “designed for the 50 million Americans approaching retirement in the next decade without a formal retirement plan.”

Retirable is on a mission “to provide ongoing management from a dedicated fiduciary advisor to help clients spend retirement income efficiently, make savings last, and navigate key decisions throughout retirement.”

Key Takeaways:

  • More than 3 in 5 (64%) respondents plan to spend/are spending their retirement years maintaining their current lifestyle. Only about 1 in 8 (13%) plan to split time in a vacation home and their main property, while only 8% plan to travel.
  • More than two-thirds (67%) of respondents have not met with an advisor to create a financial plan, and less than one third (31%) have.
  • Nearly two-thirds (63%) of respondents do not feel like they have enough money to last them through retirement or are unsure if they do, while less than 3 in 10 (27%) respondents are confident their savings will last them through retirement.
  • More than half (52%) of respondents are considering taking on part-time jobs, or are uncertain if they will have to.
  • Less than half (44%) of Americans have discussed retirement planning with their children—and only 15% plan on doing so.
  • 4 in 10 (41%) of near retirees are confident in their month-to-month spending in their current state and moving into retirement.

Oftentimes, retirement is seen “as a time when retirees want to travel, move, or make big life changes.”

However, according to Retirable’s ‘State of Retirement’ survey, retirees are looking to maintain their lifestyles “into their retirement years, with a minority of respondents expressing a desire to move.”

This pattern might be “tied to evolving expectations as individuals get older, given more respondents aged 75+ plan to forego moving or traveling, while those between ages 55-64 expect to prioritize travel in their retirement years.”

Overall, respondents believe they will “retire by the age of 68.”

Despite female respondents expressing they have a smaller retirement savings fund in comparison to male respondents, more women believe “they are likely to retire before their male counterparts.”

The survey also “revealed that individuals’ expectations of when they will retire shift as they age, with individuals anticipating to retire later as they get older.”

This is “linked with demographics as female respondents were more likely to not have a plan for retirement than male respondents (22% vs 17%), and single people also fell behind their married counterparts in retirement planning (29% vs 16%).”

Data Supporting

  • 7 in 10 (69%) respondents aged 75-84 plan to spend/are spending their retirement years maintaining their current lifestyle, whereas just under 3 in 5 (59%) of those aged 55-64 said the same.
  • On average, male respondents currently have $367,125 saved for their retirement, whilst female respondents have $257,593.
  • On average, male respondents believe they will retire at age 70, whilst female respondents believe they will retire at 67.
  • On average, respondents aged 75-84 believe they will retire at age 80, compared to respondents aged 55-64 who believe they will retire at age 65.

Healthcare, housing and expenses

Respondents are largely “aware of how to access and take advantage of vital programs, such as Medicare and Social Security.”

This is good news, as the majority of respondents anticipate healthcare “to be their largest expense during retirement.”

Given the current state of the economy, many individuals also “showed concern that the cost of living as well as mortgage/rent would also likely be one of their largest expenses during retirement.”

Data Supporting

  • More than 2 in 5 (44%) respondents anticipate healthcare to be the largest expense during their retirement years.
  • 2 in 5 (40%) respondents anticipate living/lifestyle costs to be the largest expense during their retirement years.
  • A third (33%) of respondents anticipate mortgage/rent to be the largest expense during their retirement years.
  • More than 2 in 5 (46%) respondents aged 75-84 anticipate living/lifestyle costs to be the largest expense during their retirement years, whilst 2 in 5 (40%) of those aged 55-64 said the same.

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