Warning: Retirement May Not Be What You Think
The latest Retirement Confidence study done by the EBRI (www.ebri.org) contains some alarming facts from the perspective of people who have already retired. For example:
- While the majority of workers expect to retire at age 65 or older, the reality is that the majority of retirees actually retired at age 62. Retiring earlier gives you less time to save and more time to draw down your savings.
- Almost 80% of workers expect to work in retirement; the fact is that only 29% actually do. Which means that supplementing your retirement savings may not be possible.
- And almost half of retired people spend more for healthcare than they expected before they retired. Think about how you would make up the shortfall; probably cut back your lifestyle to pay for healthcare.
Bottom line: retirement may not be what you think it’s going to be so if you are within 10 years of your target retirement age, you need to do some serious retirement planning that is based on probability and not wishes.